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THE U.C.C. QUARTERLY
VOLUME 3, NO. 2
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ggfr"uNiv53>v SPRING, 1945
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—
AUG 23 1945
Power Dam, for Waterville. wmvmm from
BtOfW " LilSiTY LIBRARY
PUBLISHED BY
UNEMPLOYMENT COMPENSATION COMMISSION OF NORTH CAROLINA
PAGE 34 THE U. C. C. QUARTERLY SPRING, 1945
The U. C. C. Quarterly
Volume 3 ; No. 2 Spring, 1945
Issued four times a year at Raleigh, N. C, by the
unemployment compensation commission of
North Carolina
Commissioners: Judge C. E. Cowan, Morganton; C. A. Fink,
Spencer; R. Dave Hall, Belmont; R. Grady Rankin, Char-lotte;
Dr. Harry D. "Wolf, Chapel Hill.
State Advisory Council: Capus Waynick, High Point, Chair-man;
Willard Dowell, Raleigh; Marion W. Heiss, Greens-boro;
H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake
Forest; Robert F. Phillips, Asheville; Mrs. R. J. Reynolds,,
Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric
Stallings, Charlotte.
A. L. FLETCHER Chairman
R. FULLER MARTIN Director
MRS. FRANCES T. HILL Editor
Regular Contributions in each issue from the
united states employment service for
North Carolina
Agency of the War Manpower Commission
Cover illustrations represent typical North Carolina
industries under the unemployment compensation
program.
Cover for Spring 19^5—Local Power Dam. Illustration from
N. C. Department of Conservation and Development shows
Pigeon River Dam, connected with Waterville Generating
Station. The development of electric power throughout the
state is a prime factor contributing to the growth of industry
and to the general welfare of North Carolina. In this issue
of the Quarterly are three articles summarizing various
aspects of electrical energy production and distribution in
the state.
Sent free and upon request to responsible individuals, agencies,
organizations and lib?-aries. Address: U. C. C. Informational
Service, Raleigh, N. C.
CONTENTS
Curtis Goes to Washington 34
A Challenge to North Carolina Industry, By S.
F. Campbell 35
Average Annual Salary-Wage Rates, By S. H.
Hobbs, Jr. 37
Our Power Industry Develops, By Edgar Womble 39
Electrifying Agriculture, By David S. Weaver 42
T. V. A. in North Carolina, By Maurice Henle 46
Fontana, By Bill Sharpe 48
Can N. C. Industry Absorb the Labor Surplus?
By S. F. Campbell 49
U. C. C. Operations 52
Unemployed Veterans—Six Months Report
Commissioners Hear Strike Cases
U. C. C. Fund
—
$100,000,000
Seasonal Workers May Lose Benefit Rights
Small Businesses Helped Most by Experience Rating
North Carolina To Have Display of Its War Pro-ducts,
By M. R. Dunnagan 54
CURTIS GOES TO WASHINGTON
FROM THE BUREAU CHIEF:
Mr. William R. Curtis, formerly of the North Caro-lina
agency, has been appointed chief of the Admin-istrative
Standards Division of the Bureau of
Employment Security. You are all acquainted with
Bill Curtis who spent seven and one-half years with
the North Carolina agency, serving two years as
Director, and two years as Chairman of the Com-mission.
He was a member of the 1944-45 Executive
Committee of the Interstate Conference of Employ-ment
Security Agencies. —By EWAN CLAGUE.
FROM THE COMMISSION
:
Whereas, Dr. William R. Curtis has tendered
his resignation as Director of the Unemployment
Compensation Division to become Chief of the Ad-ministrative
Standards Division of the Bureau of
Employment Security, the North Carolina Unem-ployment
Compensation Commission, in regretfully
accepting his resignation, wishes to express its ap-preciation
for his outstanding services, and to wish
him continued success in his new undertaking.
Dr. Curtis came to the North Carolina Unemploy-ment
Compensation Commission in 1937 as Director
of Research. He was made Director of the Unem-ployment
Compensation Division in 1941, which
position he held until the date of his resignation. He
served as Acting Chairman of the Commission from
May 1942 until July 1, 1944, while Chairman Colonel
A. L. Fletcher was in active military service, except
for a period of some five months while he himself
served with the United States Navy.
To Dr. Curtis must go a large share of the credit
for the continued progress of unemployment com-pensation,
and for the, building of a sound adminis-trative
basis for the program in this State. A
measure of the value of his services is his selection
to the high position to which he now goes. His de-parture
means a loss to the State of North Carolina,
Spring, 1945 THE U. C. C. QUARTERLY PAGE 35
and to the North Carolina Unemployment Compen-sation
Commission which will be keenly felt.
While deeply cognizant of this loss, the North
Carolina Unemployment Compensation Commission
takes pride in the honor which has come to Dr.
Curtis ; and it is both appreciative of the opportunity
which his new position offers to make genuine and
lasting contributions to the cause of unemployment
compensation, and confident of his ability to make
such contributions.
By Harry D. Wolf, for the Commissioners.
FROM THE UCC PERSONNEL
:
"All of us have a feeling, I'm sure, that evil days
are upon us, what with the unholy rumor that an
attempt may be made to make a political football
of our agency, and with the stark reality that in your
resignation we are actually losing the generator to
our power plant. Under such grievous circumstances
we find it in our hearts to try to show in some small
measure our appreciation for your interest in us indi-vidually
and collectively through these years of
happy association. The committee appointed to han-dle
the matter wishes to present to you this small
kit-bag to pack up your troubles in, with the hope
that, if used for that purpose it may prove all too
spacious. I'm sure I voice the sentiment of every
one in saying that you will carry with you the love,
the loyalty and best wishes of every one of us. Our
only consolation will be that, whatever may happen
to the program, we shall feel assured of a friend in
court in the Bureau, and shall look forward to a
breaking down of any possible barriers that might
prevent the most wholesome relations with the fed-eral
administration. If the worst should come and
the program should be completely federalized, we
shall hope to find again a sheltered spot under your
wing—and this does not imply that every one in
Washington has wings."
—By S. F. Campbell, for the UCC.
COL. FLETCHER CHOSEN
CONFERENCE OFFICIAL
Following the resignation of Dr. W. R. Curtis from
the Interstate Conference of Employment Security
Agencies, S. C. Cromwell of Maryland, President of
the Conference, polled the states comprising Region
IV—Maryland, Virginia, West Virginia, the District
of Columbia and North Carolina. Their votes elected
Col. A. L. Fletcher, Chairman of the Unemployment
Compensation of North Carolina, to the post of Vice
President for Region IV. Col. Fletcher has already
been an active participant in the work of the Con-ference,
serving as a member of its legislative com-mittee.
R. FULLER MARTIN SUCCEEDS
CURTIS AS DIRECTOR
UCC personnel heartily endorsed the Commission's
choice of R. F. Martin, since 1938 supervisor of the
Business Management Department, to succeed Dr.
W. R. Curtis as Director. Mr. Martin's duties will
not be strange since he served in that capacity from
May, 1942, through June, 1944, while Dr. Curtis
acted as Chairman during Col. Fletcher's leave.
A Challenge To North Carolina Industry
By Silas f. Campbell, Chief, bureau of research and Statistics
With the possible equalization of freight rates
between North and South and East and West, the
years immediately ahead offer the industrial leaders
of North Carolina a challenge and an opportunity
they can ill afford to ignore.
In a nation that leads the world in industrial
progress, no other state can face the future with
greater assurance and optimism than North Caro-lina.
One outstanding reason is that the state's indus-tries
are concentrated in the production of consumer
goods—the necessities of life—food, clothing and
shelter; products the purchase of which is manda-tory.
For this reason, employment, during both
periods of depression and prosperity according to
official records has remained relatively 20 percent
higher than the national level during the past dozen
years.
North Carolina manufacture is not subject to the
hazards that continually threaten those states which
concentrate on the manufacture of durable goods,
the replacement of which is largely optional, and the
purchase of which is curtailed, is not suspended
altogether, during periods of financial stringency.
Moreover, its industries, of which approximately
300 different types are currently active and covered
under the Unemployment Compensation Law, are
widely distributed geographically. This has a con-siderable
advantage over the concentration of manu-facture
in a few highly industrialized towns ; for the
effect of such fluctuations as may occur either up or
down is spread over a large area with the result that
any unfavorable impact can be most easily absorbed
with a minimum shock. On the other hand, the
benefit of any upswing in production likewise reaches
the maximum number and is felt in all parts of the
state. Little wonder the late President Roosevelt
referred to North Carolina as one of the best balanc-ed
states in the country.
While such conditions tend to assure a high degree
of industrial stability, they also present a handicap
which a careful study of the state's economy should
seek to overcome. This handicap lies in the fact that
many of its important manufactures are of a low
grade ; that is, their values are not increased through
the process of manufacture in the same proportion
as the manufactured products of other states. This
of necessity results in low wage levels.
We have been inclined to berate the employers of
PAGE 36 THE U. C. C. QUARTERLY SPRING, 1945
the state for the fact that the average weekly wage
level in North Carolina manufacture is 38.9 percent
below the national average, ranging from 64.3 per-cent
below in the manufacture of stone, clay and
cement products, to 7.7 percent below in the manu-facture
of transportation equipment. These are 1943
figures, taken at a time when war production had
brought into the state much out-of-state highly skill-ed
labor for shipbuilding.
The fault lies not so much with the employer, who,
if he produces a low priced product, must employ
low-priced labor or sell at a loss, as it does with the
general policy of stopping short in the processes of
manufacture, instead of carrying them to the highest
possible point in values added to products by manu-facture.
For instance, in one of the most promising indus-tries
of the state, the manufacture of products from
soybeans, peanuts and cotton seed, the manufacturer
is satisfied to sell the oil in its crude state to be
shipped to other states for refining, where the value
is increased ten-fold and more.
The same applies generally to the production of
leather, chemicals, minerals, tobacco pipes, and even
to textiles. For, while North Carolina mills consume
more than 25 percent of the nation's cotton used
in manufacture of textiles, and exceeds the next
highest state (Georgia) by more than half a million
bales annually, our neighboring state of South Caro-lina
has more looms and a greater production of the
finished fabric than North Carolina mills, much of
whose product is market yarns.
A study of industrial production in the United
States, based on the Census of Manufacturers for
1939 disclosed that the average value added to North
Carolina products in the process of manufacture was
58.5 percent of the total value of the material used
in manufactured products, while the average for the
nation was 65.9 percent. This is a difference of only
12.6 percent, but when it is considered that the value
of North Carolina material used in manufactured
prolucts in 1939 was $747,084,000\ it will be seen
that this loss amounted to more than $94 millions.
Recent disclosures of the U. S. Bureau of Mines
concerning the newly discovered mineral wealth of
North Carolina read like an enlarged version of the
story "Acres of Diamonds". This at a time when
the Bureau of Mines is emphasizing the fact that
the depletion of deposits of many of our important
minerals such as tungsten and black mica has reach-ed
a critical point. It only remains for us to scratch
the surface to uncover this immense mineral resource —minerals as valuable as gold, and more important
as a contribution to industrial development.
Now that we are in the process of being freed from
the curse of rate discrimination, and have come into
a fuller knowledge of the extent of our natural re-sources,
it must be patent to every one that we stand
on the threshold of an era of industrial progress that
1. U. S. Census figure, which included only firms with a
production of $5,000 or more. Based on wages reported
to U.C.C. for 1939, compared to wages reported by the
Census, value of material used in North Carolina in
1939, and the amount used for computing the loss, was
$1.3 billion.
should put the state far in the forefront among all
states of the nation.
At present the three basic industries of North
Carolina, textiles, furniture and tobacco, account for
approximately 50 percent of all non-agricultural em-ployment
in the state. If to these basic industries
be added mining, food and chemical manufacture,
under an intensive program such as our resources
warrant, it should be possible to increase total em-ployment
through these channels alone by at least
50,000 workers. This would go far toward the full
utilization of the increased labor force we may expect
with the termination of the war, and should solve
in large measure our problem of post-war employ-ment.
It is estimated that back of the employment of
each worker engaged in manufacture there is a cap-ital
expenditure of $6,000. For surface mining the
ratio would probably be less. As a maximum, such
an increase in total employment and industrial pos-sibilities
would call for an expenditure of $30 mil-lions.
This is only a third more than 25 counties of
the state spent in 1944 for alcoholic beverages, to say
nothing of unrationed beer and fortified wines. Sure-ly,
the 100 counties of the state can do more for their
own manufactures than these 25 counties can afford
to do for the manufacturers of whiskey.
The possibilities for such development are almost
unlimited. Our textile plants import annually mil-lions
of pounds of starch, while at their very doors
there exists the opportunity to manufacture at much
less cost a superior grade of starch from off-grade
potatoes for which our farmers have no market. Such
an industry alone could provide employment for
thousands of workers and increase the state's in-come
by millions.
More than eleven hundred chemists have been at
work for several years developing new uses of, and
new methods of processing agricultural products for
use in industry. Some of the experiments which
have been developed to the point of commercial pos-sibilities
are: potatoes for starch; peanut hulls, and
corn stalks for cork material; corn and wheat for
anti-freeze, solvents, butadiene, and synthetic rub-ber
; peanut and cottonseed meal for protein glues
;
ground corncobs for sandblast material, vegetable
leaves for protein poultry food. Other North Caro-lina
products have been developed to produce peni-cillin,
industrial alcohol, smokeless powder, plastics,
essential drying oils and tanning materials.
Coming at a time when the world's needs were
never so great, the prospect presents an opportunity
and a challenge such as seldom comes to a state.
Taken with the fortune of our arms, the outlook
should be a cause for rejoicing in every household.
But more, it should be a signal as the war closes
behind us, for a pooling of our home-front courage
and money to the end that our state and its citizens
shall take their rightful place at the front in the
making of a new and better world.
North Carolina taxpayers in 1944 paid 26.5 per-cent
less county taxes than in 1928, according to a
survey by the publication We The People of Raleigh.
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 37
Average Annua! Salary-Wage Rates
BY PROF. S. H. HOBBS, JR., UNIVERSSTY OF NORTH CAROLINA
The tables which appear in connection with this
article give a very accurate line on wage levels in the
different parts of the United States.
In the first table the states are ranked according
to the average annual salary-wage per all workers
in each state engaged in manufacturing, mining, con-tract
construction, trade, transportation, communi-cation,
public utilities, finance, insurance, real estate
and service, covered by state unemployment compen-sation
laws. This means that while not all workers
are included in the table, the vast majority are in-cluded
and the states are comparable since the unem-ployment
compensation laws are rather uniformly
set up in the United States as far as the administra-tion
is concerned.
The states range from an average salary-wage of
$2,769 for all workers covered in Michigan to $1,282
for all workers covered in South Carolina. The aver-age
salary-wage for all workers in the United States
in 1943 was $2,135. Of particular interest to us here
in North Carolina is that the average salary-wage of
the hundreds of thousands of employees covered by
our state unemployment compensation law was
$1,376 for the year 1943, and North Carolina ranked
forty-fifth among the states of the Union. Our aver-age
salary-wage was only $94 above that of the low-est
in the United States, $1,282 in our sister state
South Carolina. It is also interesting to know that
while the average income for all workers in the
AVERAGE ANNUAL SALARY-WAGE,
ALL WORKERS, 1943
For all workers engaged in Manufacturing, Mining, Con-tract,
Construction, Trade, Transportation, Communication,
and Public Utilities; Finance, Insurance, and Real Estate;
and Service, covered by state Unemployment Compensation
Laws. Based on data released by the U. S. Department of
Commerce in Survey of Current Business, August, 1944.
U. S. average salary-wage for all workers in 1943 was
$2,135. Average for 1939 was $1,361.
N. C. average wage-salary in 19 43 was $1,37 6, and our
rank 45th among the states.
Avrg. All Workers
Rank State 1939 1943
1 Michigan 31,575 J52,769
2 California 1,581 2,515
3 Connecticut 1,426 2,495
4 Nevada 1,397 2,492
5 Oregon 1,498 2,429
6 New Jersey 1,431 2,394
7 Ohio 1,452 2,372
8 Washington 1,402 2,355
9 Indiana......; 1,375 2,272
10 New York 1,588 2,248
11 Delaware 1,405 2,228
12 Illinois 1,522 2,228
13 Marvland 1,236 2,174
14 Wisconsin 1,425 2,158
15 Utah 1,244 2,079
16 Kansas 1,176 2,073
17 Maine 1,054 2,068
18 Rhode Island.. 1,210 2,060
19 Massachusetts 1,378 2,058
20 Pennsylvania.. 1,309 2,030
21 West Virginia.. 1,302 2,030
22 Arizona 1,275 1,989
23 Oklahoma 1,288 1,944
24 Minnesota 1,263 1,922
25 Nebraska 1,205 1,875
Rank State
26 Missouri
27 Texas
28 Wyoming
29 Montana
30 Colorado
31 Vermont
32 Louisiana
33 Idaho..
34 Virginia
35 Kentucky
36 Iowa..
37 Florida
38 New Hamp-shire
39 Tennessee
40 Alabama
41 New Mexico..
42 So. Dakota..
43 No. Dakota..
44 Georgia
45 No. Carolina
46 Arkansas
47 Mississippi. ...
48 South
Carolina
ivrg. All
1939
1,301
1,197
1,218
1,322
1,289
1,159
1,069
1,123
1,063
1,107
1,196
959
1,078
1,018
917
1,117
1,158
1,135
918
893
831
817
Workers
1943
1,868
1,866
1,854
1,840
1,841
1.811
1,781
1,780
1,747
1,726
1,716
1,702
1,645
1,644
1,568
1,528
1,494
1,499
1,461
1,376
1,340
1,289
796 1,282
United States increased approximately $1,000 from
1939 to 1943, the increase in North Carolina was
slightly less than $500, or only one-half the increase
of all workers in the United States. The average
worker in North Carolina received $893 in 1939, and
North Carolina also ranked forty-fifth in the average
pay received by workers during that year.
The second table ranks the states according to the
average annual salary-wage of workers engaged in
manufacturing for the year 1943. This is the largest
single group of workers covered by unemployment
compensation laws. The states range from $3,102
average salary-wage in Nevada, to $1,281 in South
Carolina. The average for the United States was
$2,351.
In this table North Carolina ranks forty-fourth,
with an average salary-wage of $1,377 for all wage
and salary earners of employees connected with man-ufacturing
industries. The states below us were
New Mexico, Arkansas, Mississippi, and South Caro-lina.
The average salary-wage of employees engaged
in manufacturing in North Carolina was approxi-mately
$1,000 below the average for the United
States for the year 1943.
Again it is interesting to note that while the aver-age
salary-wage increase for the United States was
approximately $1,000 from 1939 to 1943, the increase
in North Carolina was a little over $500, or about
half the increase for the United States.
WAR AND NONWAR
This table also shows the wages of covered em-ployees
segregated by war and nonwar manufactur-ing
activities. War activities include such things
as chemical and allied products, rubber, iron and
steel, ordnance, certain types of transportation, elec-trical
machinery, automobiles and automobile equip-ment.
Nonwar refers to such things as food, tobacco
manufacturing, textile mills, wearing apparel, paper,
printing and publishing, petroleum, coal, leather,
lumber, furniture and some other minor industries.
The interesting part of this table is that workers
engaged in war industries are much more highly paid
than those engaged in nonwar industries. The war
industry workers averaged $2,745 for the United
States in 1943 while the nonwar workers averaged
$1,844. Also the wage increase from 1939 to 1943
was much greater for those engaged in war work
than it was for those engaged in nonwar work.
For North Carolina the average salary-wage of
workers engaged in manufacturing in connection
with war classification industries averaged $2,217
in 1943, while those engaged in nonwar manufactur-ing
averaged only $1,266.
However, only about 19 percent of the workers
covered in North Carolina were on war industry
payrolls, while the average for the United States was
a little more than 67 percent. Only six states in the
Union had smaller percents of their manufacturing
employees working in industries classed as war in-
PAGE 38 THE U. C. C. QUARTERLY SPRING, 1945
AVERAGE ANNUAL SALARY-WAGE,
MANUFACTURING, 1943
In the following table, based on Survey of Current Busi-ness,
U. S. Department of Commerce, the states are ranked
according to average salary-wage of all workers engaged in
manufacturing, covered by state unemployment compensa-tion
laws, for year 1943. Parallel columns show average
salary-wage for 1939. The table also shows average salary-wage
for workers engaged in war, and nonwar manufacture
for both 1943 and 1939.
Rank State
1 Nevada...
Total
1939 1943
War
1939 1943
2 Michigan.
$1
1
3 California 1
4 Washington 1
5 Oregon.... 1
6 Ohio....... 1
7 Connecticut 1
8 Delaware 1
9 New Jersey 1
10 Indiana
11 Illinois
12 Maryland
13 Wisconsin
14 New York...
15 Pennsylvania 1
16 Kansas 1
17 Minnesota 1
18 Maine
19 Massachusetts 1
20 Arizona 1
21 Montana 1
22 Texas.. 1
23 Rhode Island..
24 Oklahoma
25 Nebraska
26 West Virginia.
27 Colorado
28 Florida
29 Wyoming
30 Utah
31 Missouri
.. 1
.. 1
.. 1
.. 1
. 1
"
1
.. 1
.. 1
32 Vermont 1
33 Ic
34 Louisiana 1
35 Idaho 1
36 Kentucky 1
37 Virginia 1
38 South Dakota 1
39 New Hampshire 1
40 Alabama
41 Tennessee
,421
,678
,564
,441
,481
,573
,374
,291
,416
,449
,534
,283
,504
,416
,335
,339
,458
989
,321
,283
,562
,209
,170
,340
,327
,380
,384
862
,455
,266
,298
,148
,307
,001
,232
,187
,025
,267
,047
907
991
42 North Dakota 1,210
43 Georgia.
44 North Carolina.
45 New Mexico
46 Arkansas
47 Mississippi
48 South Carolina..
822
840
999
777
726
758
United States.. 1,359
,102 $1 586 $3 376 $1,403 $1
,045 1 775 3 191 1,376 2,
,754 1 734 2 925 1,479 2,
,743 1 667 3 041 1,403 2,
,707 1 815 3 132 1,454 2,
,660 1 694 2 850 1,379 2,
,646 1 460 2 798 1,220 2,
, 523 1 458 2 919 1,203 1,
,517 1 634 2 736 1,242 2,
,476 1 594 2 676 1,256 1,
,418 1 635 2 635 1,446 2,
,437 1 516 2 738 1,122 1,
,400 1 651 2 732 1,374 1,
,365 1 019 2 765 1,777 2,
,297 1 549 2 688 1,170 1,
,287 1 419 2 498 1,320 1,
,258 1 571 2 667 1,421 1,
,215 1 307 3 157 958 1,
,214 1 591 2 582 1,210 1,
,177 1 489 2 376 1,199 1,
,162 1 956 2 746 1,404 1,
,130 1 412 2 511 1,155 1,
,120 1 388 2 474 1,079 1,
,113 1 415 2 340 1,320 1,
,083 1 391 2 359 1,317 1,
,073 1 615 2 459 1,175 1,
,067 1 506 2 223 1,316 1,
,027 869 2 614 861 1
,
,023 1 222 1 885 1,457 2,
022 1 506 2 263 1,164 1,
,019 1 528 2 355 1,205 1,
,948 1 602 2 373 1,042 1,
,947 1 405 2 166 1,268 1,
,937 1 268 2 624 965 1
,
,902 1 302 2 577 1,231 1,
,865 1 462 2 322 1,086 1,
,782 1 428 2 544 893 1
,738 1 438 2 166 1,260 1,
,723 1 427 2 202 1,019 1,
,668 1 273 2 204 732 1,
,615 1 233 2 044 903 1
,595 1 378 2 026 1,202 1,
,484 1 113 2 271 784 1,
,377 1 151 2 217 826 1,
,343 947 1 399 1,005 1,
,329 945 1 874 764 1,
,296 961 2 041 699 1
,281 798 1 864 756 1,
,351 1 524 2 745 1,250 1
Nonwar
1939 1943
,869
,235
,244
,260
,192
,022
,079
,672
,075
,887
,066
,753
,869
,063
,722
,845
,860
,633
,851
,854
,873
,673
,813
,767
,847
,612
,811
,393
,027
,684
,679
,628
,739
,476
,887
,558
,326
,711
,649
,169
,290
,575
,213
,266
,336
,155
,076
,255
,804
dustries. This means that our workers are missing
the opportunity to cash in on the higher wages paid
in war activities, but it also means that industry in
North Carolina will not have to make a very large
readjustment back to normal after the war is over.
The war industry payroll in North Carolina in 1943
totaled 104 million dollars, while the nonwar manu-facturing
industries payroll totaled 444 million dol-lars.
For the United States the war industries pay-roll
was more than twice the nonwar industries
payroll. Manifestly we are participating in the war
industries only in a very minor way. The main ex-ception
to this is that North Carolina has been
selected as a major military training locale. This is
shown by the fact that 18.5 percent of all salaries and
wages received in North Carolina in 1943 came from
the government while the national average was only
12.5 percent. This is due to the excessive number
of military personnel in North Carolina.
OTHER INDUSTRIES
North Carolina is not one of the leading mining
states yet several thousand people make their living
from mining operations. The average salary-wage
of mining operatives in North Carolina in 1943 was
$1,243, while the average for the United States was
$2,179. In no state is the annual salary wage per
mining employee lower than in North Carolina.
The annual salary-wage per employee of workers
employed in contract construction in 1943 was $1,710
in North Carolina, while the average for the United
States was $2,556. North Carolina ranks forty-fifth
in this category.
There are many thousands of people engaged in
trade covered by unemployment compensation laws.
The average salary-wage in North Carolina in 1943
was $1,239, while the average for the United States
was $1,678. North Carolina ranked forty-third
among the states in average salary-wage paid to this
group of workers.
The above data are very significant. One could do
a lot of moralizing on the basis of these facts. It is
never our purpose to do more than to present the
facts about life and livelihood in North Carolina. We
might say, however, that it is obvious that the
salary-wage schedule in North Carolina today is not
even average for the South. Bear in mind that these
data cover mainly private industry and they cover
a large majority of all employees. They are as rep-resentative
as any data can be. They do not cover
public employees, such as school teachers, welfare
workers, employees in the state institutions of high-er
education, institutions for the insane, and so on.
We know from data revealed from other sources that
the wage and salary scale of public employees is
pretty much on a par with the wage scale of the vast
employed public in this and other states. We might
say further that the level of living in any state is
quite definitely determined by the average annual
income of its population, especially the great mass
which gains its living by daily employment. The
things that one buys are not any cheaper in North
Carolina.
The data presented here are compiled from Survey
of Current Business, publication of the U. S. Depart-ment
of Commerce. They are official data and they
are also representative data, since workers covered
by unemployment compensation laws constitute the
vast majority of all workers in every state, and even
those not covered have wage schedules positively
correlated with the schedules of covered workers.
NEW "E" AWARD
The War and Navy Depatments announced in
March that the Acme Spinning Company, plants Nos.
1 and 2, in Belmont had won the Army-Navy "E"
award for excellence in the manufacture of war ma-terials.
The Acme Spinning Company is a welcome
addition to our Tarheel Honor Roll.
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 39
Our Power Industry Develops
by Edgar Womble, rate expert, north Carolina Utilities Comm?ss?on
In the production of electric energy and sales,
North Carolina stands first among the South Atlantic
states and in all the states that border the Atlantic
Ocean from Maine including Florida it is exceeded
only by Massachusetts, New York, New Jersey and
Pennsylvania, all great manufacturing states and
far greater in population.
The revenue of privately owned electric utilities
last year amounted to $49,687,511.72. The number
of customers served was 397,682, and the kilowatt
hours of current sold was 3,936,631,684.
In 1932, the amount of revenue was only $26,166,-
924.72; the current sold 1,722,873.64; the number of
customers 190,109.
For the past decade there has been a steady and
substantial yearly increase in the generation and
sales of current in North Carolina by privately owned
utilities, but last year the output by these companies
was 491,040,555 less than 1943 production. The
slump was due to the closing down of government
camps and other government agencies which had
sprung up under war conditions, private business
which depended on these governmental activities and
brown-outs imposed by governmental order. This
drop in production was but a natural and expected
thing. The production figures for 1944 are still high
and exceeded the production in 1940 by 1,229,765,552
kilowatt hours.
Below are the total figures for capacity of plants
and kilowatt hours of current generated by privately-owned
power companies, by years, 1932 to 1944, in-clusive.
CAPACITY OF PRIVATEL/Y-OWNED PLANTS
Hydro Steam Total
1944 461,051 616,585 1,077,636
1943 461,131 616,585 1,077,636
1942 461,021 585,052 1,046,073
1941 461,786 514,267 976,053
1940 395,851 431,085 826,936
1939 397,021 351,149 748,170
1938 398,078 351,149 729,227
1937 397,528 296,995 694,523
1936 393,043 289,555 682,598
1935 397,623 284,277 681,900
1934 424,534 365,996 790,530
1933 364,685 365,682 730,366
1932 364,664 365,776 730,440
MAJOR POWER COMPANY PLANTS
Below are names of, location and capacity of plants
of the major power companies
:
Carolina Power & Light Company—Hydro: Blew-itt,
Pee Dee, 24,600 ; Buckhorn, Corinth, 2,900 ; Car-bonton,
Carbonton, 1,000 ; Eury, Troy, 600 ; Lockville,
Moncure, 1,000; Lower, Vass, 450; Marshall, Mar-shall,
3,000; Tillery, Mt Gilead, 62,000; Waterville,
Waterville, 108,000 ; Weaver, Asheville, 2,500. Steam
:
Cape Fear near Moncure, 92,500 ; Elk Mountain, near
Asheville, 13,000.
Duke Power Company—Hydro: Bridgewater, Ca-tawba
River, 20,000; Rhodhiss, Catawba River, 25,-
500 ; Oxford, Catawba River, 36,000 ; Lookout Shoals,
Catawba River, 18,720; Mountain Island, Catawba
/
I -
t V
J '
;
&h v
v. ,/i
100,000 Volts On Its Way to Serve Raleigh
River, 60,000; Turner Shoals, Green River, 5,500;
Tuxedo, Green River, 5,000 ; Spencer Mountain, South
Fork River, 640; Idols, Yadkin River, 1,411; Plants
under 700 KVA, 352. Steam : Mt. Holly, Mt. Holly,
25,000; Eno, University, 30,000; Buck, Spencer,
190,000; Riverbend, Mt. Holly, 165,000; Cliffside,
80,000.
Tide Water Power Company—Steam : Wilmington,
11,500. Internal Combustion: Morehead City,
1,902; Beaufort, 632.
Virginia Electric & Power Company—Hydro:
Roanoke Rapids, 6,020. Steam, Rosemary Mfg. Com-pany,
2,500. Diesel: Kitty Hawk, 100.
CURRENT GENERATED KWH
Hydro Steam Total
1944 1,373,284,811 2,714,256,360 4,087,541,171
1943 1,554,811,751 3,023,769,975 4,578,581,726
1942 1,399,114,548 2,882,754,654 4,281,869,202
1941 1,069,044,155 3,045,914,883 4,114,959,038
1940 1,023,114,923 1,834,660,696 2,857,775,619
1939 1,122,410,196 1,118,441,773 2,240,851,969
1936 1,404,539,329 294,982,374 1,699,521,703
1938 1,148,294,734 755,250,661 1,903,545,395
1937 1,460,221,974 354,230,711 1,814,452,685
1935 1,337,929,070 113,498,745 1,451,427,815
1934 1,080,553,507 78,804,734 1,159,358,241
1933 1,018,442,413 190,329,548 1,208,771,961
1932 999,384,688 309,131,588 1,308,515,676
PAGE 40 THE U. C. C. QUARTERLY SPRING, 1945
In a study of these tables it is not only significant
to note the steady climb in plant capacity and in the
production of electric energy, but the steady out-stripping
of hydro development by steam.
SHIFT TO STEAM GENERATION
In 1932 only one-third as much current was pro-duced
by steam as that turned out by hydro plants.
In 1939, it will be noted that steam was closely on
the heels of hydro and in the following year 1940
overshot hydro by 811,545,773 Kwhrs, and three
years later, 1943, its production was virtually double
that of water power.
This shift from hydro to steam to the uninitiated
may appear strange when hydro development has
been accepted as the source to cheap power. In the
early days it was the source of cheap power and is
so today in some cases but collateral factors which
have come into the picture in so far as privately-owned
utilities are concerned, have made steam
plants preferable. Cheapness in hydro development
began to shrink when the acreage necessary to im-pound
the water was seized upon by taxing agencies
as a fertile field to swell the tax fund. Waste land,
swamp land and ground that wouldn't sprout peas
became about as valuable as land with a gold lode.
Then, too, improved methods in the steam process
considerably cut the cost per kilowatt hour. Further-more,
the Federal Government came into the hydro
picture, through interpretation and administration
as chief cook and bottle-washer and prospective own-er
of the plant.
This pound-of-flesh action is another illustration
of the policy of "killing the goose that lays the gold-en
egg." Electric utilities, in my opinion, should be
taxed as lightly as possible as power rates are a tre-mendous
factor in industrial progress.
ELECTRICITY THE YARDSTICK
Electric energy is the yardstick which gives the
measure of the economic standing of a community,
state or nation. This fact was recognized by Wash-ington
Duke and his sons, tobacco magnates, when
way back yonder they poured tobacco money into
hydro-power developments in North and South Caro-lina.
In the great streams of the Carolinas, the Dukes
envisioned cheap power which would create thriving
industry ; and their vision came true. Mr. Duke was
so obsessed with the idea of cheap power that he
overshot himself and had to be rescued by the courts
to get compensatory rates for his electric product.
Mr. Duke was not the first man nor the only man
or men to develop the hydro-power industry, but he
did a whale of a job when he put his hands to the
task. His hydro developments not only put the tex-tile
industry of the state in a commanding place but
it gave cheap power to other industries.
The founders of the Carolina Power and Light
Company among whom was the late Paul Tillery, and
today represented by President Louis Sutton, had
the same vision and followed closely the Duke devel-opment.
Today this company stands second only to
the Duke Power Company in North Carolina. To-gether
these two companies furnish 75 percent of the
electric power dispensed to the people of the state.
WAY OPEN TO LOWER RATES
The vision, determination and persistence of the
present Chairman of the North Carolina Utilities
Commission, Stanley Winborne, aided by the tech-nical
work of the writer, in 1932, was in a large way
responsible for the favorable electric rates which the
state enjoys and which has meant so much to the
business and industrial progress and to the home life
of North Carolina.
At that time, 1932, the Commisisoner, with the
assistance of the other Commissioners, succeeded
by conferences with the major power companies, in
putting across the policy of effecting reduced rates
in order to increase potential use of electric energy
instead of relying on the counter policy of letting
reduced rates follow increased usage of current. The
substantial reductions secured at these 1932 confer-ences
gave a great impetus to use of current and the
new policy was justified. In subsequent years other
reductions were made and today the residential rates
of the Carolina Power and Light Company and the
Duke Power Company, which as said before furnish
current to the bulk of the people of North Carolina,
are far below the national average and their idus-trial
rates are in line with the rates in the states
which have the lowest rates in the nation.
To give a concrete illustration of what has taken
place in sales, and reduced cost to the people, below
is given data of the Carolina Power and Light Com-pany
and the Duke Power Company and other major
power companies for years 1932 and 1944, showing
kilowatt hours sold, the average sale price and the
saving effected by the lowered cost of current.
1932 SALES
RESIDENTIAL: KW Ers. Sold Revenue Average
Carolina Power & Light Co... 24,363,932 $1,534,045.96 6.296?!
Duke Power Company
j 43,104,915 2,413,875.24 5.6
Southern Public Utilities _. i ' ' ' '
Durham Public Service Co... 5,250,844 303,220.77 5.774
Tide Water Power Co 4,130,853 324,465.01 7.854
Virginia Electric 2,527,800 127,529.76 5.045
COMMERCIAL:
Carolina Power & Light Co... 19,759,456 1,170,449.51 5.923
Duke Power Company i 28,736,610 1,479,819.09 5.15
Southern Public Utilities / '
'
Durham Public Service Co... 3,067,918 191,853.28 6.253
Tide Water Power Company 2,786,283 217,536.16 7.807
Virginia Electric 2,076,388 120,667.81 5.811
INDUSTRIAL:
Carolina Power & Light Co... 174,335,939 2,368,649.54 1.358
Duke Power Company 525,493,782 6,296,496.03 1.198
Southern Public Utilities 88,242,388 1,768,495.00 2.004
(613 ; 736, 170) (8,064,991.03) 1.3
Durham Public Service Co... 7,296,323 185,416.91 2.541
Tide Water Power Company 16,796,299 336,534.01 2.003
Virginia Electric... 35,725,795 418,154.31 1.17
1944 SALES
Carolina Power & Light Co.
1932
KWH Avg. Avg. Diff. Saving
Residential 107,472,913 2.732 6.296 3.564 $3,830,334.61
Rural 28,541,786 3,368 6,296 2.928 8,357,327.77
Commercial........ 139,064,871 1.820 5.923 4.103 5,705,831.65
Industrial 431,884,913 1.030 1.358 .328 1,416,582.51
11,788,481.54
Duke Power Company
Residential 243,061,933 2.967?! 5.6 2.633 6,399,820.69
Commercial 141,371,080 2.367 5.15 2.783 3,934,351.71
Industrial 1,710,335,631 .885 1.3 .415 7,097,892.86
17,432,065.26
Spring, 1945 THE U. C. C. QUARTERLY PAGE 41
Interior Views of N. C. Power Generating Plants
Tide Water Power Co.
KJVH Avg.
Residential 23,299,079 3.981
Rural 1,330,473 4.577
Commercial 29,908,409 3.413
Industrial 137,381,366 1.123
Virginia Electric & Power Company
Residential 15,404,031 3.251
Commercial 20,357,293 2.075
Industrial— 77,506,947 .982
1932
Avg. Dig.
7.854 3.873
7.854 3.277
7.807 4.394
2.003 .880
! 902,373.32
43,599.60
1,314,175.40
1,210,329.80
2 3,470,478.12
5.045 1.794 2 27,634.83
5.811 3.736 760,548.46
1.17 .188 145,713.06
2 933,896.35
RECAPITULATION:
Carolina Power & Light Co ...?11,788,481.54
Duke Power Company 17,432,065.26
Tide Water Power Company 3,470,478.12
Virginia Electric & Power Company 933,896.35
SAVINGS BY YEARS:
1933..
1934..
1935..
1936..
1937..
1938..
1939..
-2 2,031,952
2,159,464
4,187,212
6,607,135
10,060,912
11,758,913
17,612,476
1940..
1941..
1942..
1943..
1944..
Total.
233,624,921.27
2 21 682 955
25 602 835
28,971 841
34 547 609
33 624,921
2 198 848 223
TAXES HEAVY ITEM
The privately-owned utilities on their electric
operations last year paid in federal, state and local
taxes $13,289,862.41, which was 26.74 percent of the
gross revenue they received.
The great bulk of this tax was paid by the Caro-line
Power and Light Company and the Duke Power
Company. The taxes paid by them were: Carolina
Power and Light Company, $4,394,318.62; Duke
Power Company, $7,738,316.56.
MUNICIPAL OPERATIONS
Sixty municipalities operate their own electric sys-tem.
Their sales for 1944 amounted to $6,324,058.48.
They sold 210,348,820 kilowatt hours of current to
131,451 customers.
Thirteen of these municipalities own their own
generating plants and generated a total 121,333,318
kilowatt hours, 119,496,499 by steam or diesel, and
1,836,819 by hydro.
Rocky Mount was the largest generator of current.
Its output was 37,841,000. Next in point of output
were Wilson 18,628,253; and Greenville 18,380,673.
CUSTOMERS, SALES, REVENUE
Below are number of customers, kilowatt hours of
current sold and amount of current sold and amount
of revenue by eight of the larger towns:
Rocky Mount 6.643 29,912,573 2560,026.80
Fayetteville... 7.946 23,269,112 746,928.62
Greenville 5.796 15,150,524 357,126.64
High Point._ 9.065 14,387,060 450,536.81
Gastonia 4.642 12,310,183 318,490.64
Lexington 4.456 12,196,660 308,001.24
New Bern 4.486 11,359,702 387,992.74
Kinston 5.410 10,908,536 334,167.04
RURAL ELECTRIFICATION
Rural Electric Membership Corporations during
the year 1944 bought 46,826,262 kilowatt hours of
current from privately-owned power companies or
other sources and distributed it to its members. They
paid an average of 1.22 cents per kilowatt hour for
current purchased. There were in operation 27 of
these companies besides one Georgia company which
serves customers in Cherokee and Clay counties.
Three of these membership corporations have gen-erating
plants of their own, one of which generates
all the current that it sells. These plants are small
and the current generated is not great. At the be-ginning
of this year they had 12,036 miles of line in
operation serving 4, 457 customers.
It has not been necessary for these membership
corporations to build their own generating plants as
the major power companies of the state have whole-heartedly
cooperated with the membership corpora-tions
and Gwyn Price, the present commisisoner of
the North Carolina Rural Electrification Authority,
and his predecessor, Dudley Bagley. These commis-sioners
have acted with vision and have seen the
wisdom of teamwork with the privately-owned com-panies
in rural electrification.
In this development the records show that the
Carolina Power and Light Company and the Duke
Power Company have played a great role not only
in furnishing current for resale at reasonable prices
but in extending direct service to thousands of cus-tomers
in their respective territories.
An outstanding figure in rural electrification is D.
S. Weaver, of State College. His vision and studies
PAGE 42 THE U. C. C. QUARTERLY SPRING, 1945
were of great aid not only to the membership cor-porations
but to the privately-owned companies who
sensed obligation to rural dwellers in their areas.
When the war shall come to an end and material
shall become available for construction, rural electri-fication
will undoubtedly go forward by leaps and
bounds as rural areas everywhere now are thor-oughly
electric conscious and are clamoring for the
appliances which will take the drudgery out of the
home life, the barn and the farm, and put to work
"hands" that tire not and pour profit into the lap of
the farmer and his good wife.
This year, 1945, three more companies have been
formed, one of which is already in operation.
ELECTRIFYING AGRICULTURE
By Davsd S. Weaver, Professor of Agricultural Engineering, State College
The progress which was made in
rural electrification in North Carolina
in the decade after our right of way
was cleared through the establish-ment
by the General Assembly in
1934 of the North Carolina Rural
Electrification Authority, is truly
amazing. It has far exceeded expec-tations
and astonished even those of
us who originally saw the need and
surveyed the possibilities of carrying
electric power into the state's rural
areas. At present, more than a third
of North Carolina's farms have cen-tral
station electric service. This rep-resents
a tremendous advance since
1935 when only 3.2 percent of our
farms enjoyed that advantage.
The rate of this progress has been
halted only temporarily by the mate-rials
shortages of the war years. The
next decade holds the promise of con-tinued
expansion, possibly accelerated to show an
even steeper upward trend than the one on the ac-companying
chart. Furthermore, such expansion
can be started sooner than construction development
in other fields, for the organizational work has been
going forward in spite of interruption of actual elec-tric
line extensions. Many planned programs await
only the availability of wire and other essential
equipment. There are no reasons why eventually
practically every farm and rural community in North
Carolina should not have electric power with all its
conveniences.
The value of electrification to rural communities
and individual farm establishments, however, cannot
be measured adequately in terms of miles of lines or
of current consumed. The improvements in living
standards, in the productive capacity of the people,
in health, education and general welfare, must be
multiplied by almost every phase of human activity
you can think of.
HISTORY
Around the turn of the century, few except the
larger towns were served by plants for the econom-ical
production of current. Consequently, the cost of
current as a source of fuel, and in some cases even
for light, was all but prohibitive for the average per-son.
Rural electrification, the introduction of mod-
'-J&C& s^m s\ wewbiz.
ern equipment, and continued im-provement
in machinery and methods
have placed it within reach of prac-tically
all of North Carolina's 400
towns and villages of less than 2500
population as well as a large propor-tion
of its rural inhabitants. It is
generally recognized that the increase
in the use of electric current for light
and fuel has been tremendous and
probably as great relatively as the in-crease
for industrial use.
Prior to 1934, the demand for rural
electrification in North Carolina was
insignificant compared to the years
that followed. Statewide development
was precluded largely by the unor-ganized
and scattered demand for ru-ral
electric power. However, vision
was not lacking, and there were those
who became interested in rural elec-trification
from the standpoint of
satisfying both material and cultural wants—in de-veloping
leisure and generally higher standards of
living for farm families, aside from the purely pro-ductive
possibilities of electric power.
While J. C. B. Ehringhaus was a gubernatorial
candidate, he outlined in his speeches the many ad-vantages
and opportunities for development of rural
living in North Carolina, with the possibility of elec-tricity
for our farms. At about the same time, the
interest shown in rural electrification by the 28,000
farm families contacted in connection with a federal
housing survey of ten North Carolina counties spur-red
a further investigation, conducted by the Agri-cultural
Engineering Department of State College
in the three counties of Cleveland, Edgecombe and
Moore, of rural electrification possibilities. While
this investigation revealed the gigantic possibilities
inherent in an electrification program, it was not
complete enough for a definite program. But as a
result, of it, Governor Ehringhaus, consulting with
agricultural leaders, engineers and others, determin-ed
that a state-wide survey would be desirable and
appointed a committee of outstanding rural leaders
to draw up specific plans for such a 100-county sur-vey.
The committee met on May 31, 1934, and se-lected
me to direct the survey which was to determ-ine:
(1) the location of the existing distribution
lines serving rural customer; (2) the desire on the
Spring, 1945 THE U. C. C. QUARTERLY PAGE 43
part of the farm families for electric service; (3)
the location of areas where the construction of rural
lines would prove economically feasible. After some
delay the Emergency Relief Administration approv-ed
the project and provided approximately $32,000.
Following the introduction of our survey as a relief
project, national officials became interested and
many other states undertook similar surveys.
Through carefully planned publicity the idea of
rural electrification was carried to the people of the
state. This campaign to stimulate thought on the
subject was so successful that the original estimates
of the extent of the survey had to be repeatedly re-vised
upward. Almost overnight 135 separate com-munities
signified interest in the program and within
six months 1,035 localities were developing their
plans. Perhaps no other movement for the better-ment
of rural life in recent years so gripped the
imagination of people. Whole counties, having
despaired of ever obtaining electric service, awaken-ed
to the possibility of its attainment and the com-fort
which it provides.
With the funds available, we conducted our survey
over a 15-month period in which 58 engineers were
employed in gathering and compiling data by a farm-to-
farm canvass in interested communities. The re-sults
gave a complete picture of conditions through-out
the state mapped by counties, statements of
average costs per mile, calculated revenues and rates,
data on buildings and appliances to be wired and
used, and included the statement that:
"Although there will be fewer customers per mile on
rural lines than in the cities, there are a great many more
economical uses for electricity in the rural homes than in
the urban homes. If the farmer's income can be raised
sufficiently to permit him to afford the electric service and
he can be educated in its economical use, many of the poorer
lines will soon show sufficient revenue to make them pay-ing
propositions.''
This state-wide survey indicated definitely the
extent of the need for electrification of North Caro-lina
farms, and in 1935, the General Assembly,
sensing the quickening pulse of isolated and unserved
rural areas, created a new department to be known
as the North Carolina Rural Electrification Author-ity
with an appropriation of $10,000 annually:
"To secure electrical service for the rural districts of the
state where service is not now being rendered; to contact
the power companies and othr agencies for the supply of
electric energy, for and on behalf of the rural communities
that desire service; to have such rights and authority to
secure for such local communities assistance from any
agency of the Federal Government . . .. for the purpose of
promoting and encouraging the fullest possible use of elec-tric
energy in the state by making electric energy available
to said inhabitants of the state at the lowest cost consistent
with sound economy and prudent management."
In short, the activities of the state Authority were
to be promotional. The Authority has no money
with which to construct rural lines and is dependent
upon the cooperation of existing facilities to accom-plish
its purpose. Electric service to rural areas is
supplied by three sources: (1) public utilities; (2)
municipalities; and (3) cooperatives sponsored by
the Federal Rural Electrification Administration.
The latter agency was in its infancy at the time our
Authority was established and had not yet announc-ed
its policies and plans, but the North Carolina Act
had made provisions for accepting any federal assist-ance
which might be forthcoming.
The work of the Federal Rural Electrification Ad-ministration
and the North Carolina Rural Electrifi-cation
Authority has been much confused in the pub-lic
mind. Although they have the same purpose of
extending rural power lines to every possible section
of the country, and of securing lower rates with the
increased consumption which greater farm use
brings about, and the education of the rural people
in the use of electricoty, the Federal Administration
has no district or state offices, while the North Caro-lina
Authority has its office in Raleigh. A further
distinction is that the state Authority has no funds
except for maintenance ; whereas the Federal Admin-istration
has many millions at its disposal.
Under the leadership of Dudley Bagley, first chair-man
of the North Carolina Authority, a practical
plan was worked out for accomplishing its purposes.
This enlisted the cooperation of established agencies —including public utility companies, municipalities,
the State College Extension Service, and the State
NORTH CAROLINA
RURAL CUSTOMERS RECEIVING
CENTRAL STATION SERVICE
J
PAGE 44 THE U. C. C. QUARTERLY SPRING, 1945
Utilities Commission, under whose guidance power
rates in North Carolina have steadily dropped. From
the beginning of the program, the utility companies
have actively cooperated with the Authority. The
results of their efforts to date show that they have
added more new rural customers than all other
agencies combined. Approximately 60 towns own
their power distribution systems and a large propor-tion
of these have manifested their interest in the
surrounding territories by building rural power lines.
Getting off to a comparatively slow start, the Fed-eral
Rural Electrification Administration has in more
recent years speeded up its program in this state
through the formation of 30 rural electric coopera-tives*
From 1935 to the present, the story of rural elec-trification
in North Carolina is best told by statistics,
some of which are indicated in the chart. Statistics
themselves, however, do not reveal some of the tre-mendous
obstacles that were encountered. Among
these were the problems connected with construction
costs, customer density, development of satisfactory
rural rates, rights of way and the divisions of terri-tory
among competing agencies.
EDUCATION
A study of the uses to which those interviewed
thought they could put electricity revealed that most
people were thinking only in terms of lights for their
homes. The much more important use of electricity
to relieve farm drudgery and increase the quantity
and quality of agricultural products was at first little
appreciated. The fear of excessive costs and the
lack of understanding of the many ways in which
electricity could be applied to agriculture were very
evident. Thus, another great factor necessary for
the success of any agricultural program was clearly
pointed out, namely, the education of our rural peo-ple,
as well as the development of a practical plan
of financing.
The final success of the rural electrification pro-gram
probably depends as much upon the practical
use made of electricity on our farms and in our farm
homes as it does upon the actual extension of rural
distribution lines. Because of this, close contact has
been maintained between the Authority and the
Agricultural Extension Service of State College.
The assistance of the Extension Service has helped
immeasurably in educating rural people in the uses
to be made of electricity. In the early days meetings
were held throughout the counties, chiefly devoted
to supplying general information as to the steps nec-essary
to secure assistance in building lines. Some
of the early activity involved conducting schools, in
which the Extension Service attempted to impress
upon rural people the necessity for having a safe
and adequate wiring system installed in their homes.
When the rural electrification program was first
undertaken, the assistance of county agents, home
demonstration agents and vocational agriculture
*The editor wishes to comment on the fact that while as
non-profit organizations the electric membership corpora-tions
are not subject to the Unemployment Compensation
Law, almost half of them have voluntarily elected coverage
as subject employers in order to give their workers the pro-tection
of unemployment insurance.
teachers was enlisted. As the program developed,
the interest of these workers increased, and their
efforts have contributed materially, on the educa-tional
side, to the present status of the program in
North Carolina. The interest of specialists whose
work involved the application of electricity in its
practical use in their particular fields—such as dairy-ing,
poultry, and horticulture—has accounted for a
more widespread appreciation of the value of elec-tricity
for these phases of agricultural advancement.
As part of our promotional work, two bulletins
—
"Using Electricity on North Carolina Farms" (67,-
000 copies) and "Wiring and Lighting the Farm
Home"—together with numerous leafflets were dis-tributed
to the farm people of the state. Actual
demonstrational equipment was made and exhibited,
enabling people to observe in a practical way the
problems and benefits of rural electrification. Ex-treme
attention has been paid to the matter of safe
and adequate wiring, which is considered by most
observers as the "bottle-neck" in the rural electrifi-cation
program, since inadequate wiring will prevent
the use of sufficient appliances to make electricity a
real economical asset on many of our farms. In spite
of the thousands of farm people who undoubtedly
have been influenced to wire their buildings ade-quately,
it is impossible to reach all of the many new
users. Those that do not have the foresight fre-quently
awake to the fact that they made a mistake
in not securing a sufficient sized wire, a large enough
number of outlets, etc., to permit them to expand
their uses of electricity to the fullest extent in the
phases of home and farm work for which it is ideally
suited.
PROGRESS
At the beginning of our program in 1935, there
were 1,800 miles of rural lines serving 11,000 farm
customers. In 1944, there were some 30,000 miles
serving 97,590 farm customers. The estimated value
of rural distribution lines in 1935 was $3,600,000
which by 1944 had increased to $30,000,000. Our
1943 survey revealed that the average customer plan-ned
to use 437 kilowatt hours per year, but a study
of the electric bills of the same customers in 1943
showed that they were using 1,197 kilowatt hours
per year.
"While it is not possible to say definitely what part
of the increased production in agriculture is due to
electrification, it is interesting to note that in 1935,
North Carolina produced 18,000,000 chickens and
46,000,000 dozens of eggs, while in 1943 the produc-tion
was 38,000,000 chickens and 84,000,000 dozens
of eggs. Similarly dairy production rose in the state
from 148,000,000 gallons of milk in 1935 to 170,000,-
000 gallons in 1943. In Chatham county, for in-stance,
because of the differentiating features in
electrification the agricultural business has complete-ly
changed over from one-crop (cotton) farming to
a diversified program of dairying and poultry rais-ing.
Siler City now has a poultry-processing plant
with a capacity of 12,000 birds a daj^. When North
Carolina was called upon to furnish fluid milk for
army camps, the required conversion of barnyard
Spring, 1945 THE U. C. C. QUARTERLY PAGE 45
milk into grade A would have been impossible with-out
the help of electricity.
Switching to the rural home, it appears that in
1935 an estimated 29,000 radios, 16,000 water sys-tems,
and 2,000 refrigerators were in use; whereas
by 1940, these had increased to 149,000 radios, 22,500
water systems, and 38,000 refrigerators. We have
found that 50 percent of our North Carolina rural
customers install electrical refrigeration—a greater
saturation of this type of equipment than exists in
urban communities. Such figures suggest the tre-mendous
opportunity rural electrification offers
through income-producing uses and the improvement
of living standards.
You hear many farmers say they would never
again farm without electricity. They have discover-ed
that their actual cash income increases with its
use. It helps to improve the quality of farm products —as milk for instance—and enables them to produce
more with less personal effort. More cash permits the
addition of more material comforts, and the conser-vation
of human energy allows the individual time
for cultural development. Electrification does more.
It raises the property values of farms. It helps a
landowner to acquire and hold good tenants. Its ben-efits
multiply in every direction. There is the health
angle, where running water and bathrooms in the
home, safe sewage systems, septic tanks, and better
diet from cooking and water improvement, all make
for sounder bodies. And in education, better lighting
means better home work from the school children.
Changing policies regarding loans by the Federal
Administration and by the private utilities as far as
their extension programs were concerned brought in
as new, feasible territory many areas which were
originally considered beyond the help of existing
agencies.
One of the most notable features in the whole rural
electrification program, credit for which must be
divided among all the agencies participating, is the
fact that the average cost of building rural lines is
now around $380 per mile. This is a real contrast to
the figures prevailing before 1934, when the utilities
quoted costs of from $1,500 to $2,000 per mile. Some
power companies are now willing to accept less than
one-twelfth of the investment per mile per year in
revenue instead of requiring one-third to be returned
each year. This means that instead of demanding a
total gross revenue per mile from customers on that
mile of from $500 to $700 annually, they now accept
$72 per mile per year. By this means the number of
customers who could accept service has been increas-ed
due to the fact that their proportionate part of the
cost has been so much reduced.
One of the factors accounting for the lower cost
per mile in constructing rural lines, is the cooperation
which has been afforded by the manufacturers of
line materials. Transformers, wire insulators, poles,
cross arms and all other hardware in connection with
line construction was materially improved and the
cost reduced. Greater strength of wire has been
introduced to permit fewer poles per mile. Formerly
up to 48 poles were set up, the standard number now
is 14. The practice of using no cross arms and only
one insulator also substantially reduced costs. As
costs continue to be lowered and consumption grows
as a result, the practical possibility of reaching less
feasible areas is increased.
In using 100 kilowatt hours per month, the farm
customer now pays from $3.50 to $5.00 as compared
with a bill which would have been rendered him in
1932 at the rate of from $7.25 to $7.33.
History has been made in North Carolina in the
past decade. No other similar length of time has
seen such an improvement and such a desire for im-provement
on the part of our farm people.
THE FUTURE
While many more miles of line will be built, it is
obvious that one of the largest problems facing the
advancement of this program is that customers con-nected
make wider use of electricity in their daily
operations. Development in this direction follows
extended service, but there is a lag tendency. Among
all the improvements which may be made about a
farm, there is nothing to compare with the versatile
uses of electricity. A horse can plow land, but it
cannot operate a washing machine, a tractor can
drive an ensilage cutter, but it cannot brood chicks,
a windmill can pump water but it cannot cook a meal,
a gasoline engine can be used to grind feed but it
cannot light a home, and so by comparison, electric
current can do almost all things that other forms of
power can do, and do it better, more economically,
more safely and more quietly.
Increased use and reduced rates mean a continu-ously
widening field for the spread of rural electrifi-cation.
In other words, more and more people will
learn to use electricity for practical purposes in their
daily living as rates decrease and uses increase.
Electricity on the farm is no longer a luxury but
has become a necessity for efficient farm production
and management, and for better farm living. How-ever,
its fullest use is just beginning to be appreci-ated.
When asked the question what would be the
first electric service he would be willing to give up,
one Tarheel farmer recently said: "Well, I hadn't
thought about that before, but I guess it would be
our lights. We just couldn't do without our refrig-erator,
water pump and brooder."
North Carolina's farm population includes 46 per-cent
of the people living in the state—only one other
state has a larger rural population. Hence postwar
expansion of rural electrification will be of paramount
importance to the welfare not only of the rural dwell-ers,
but of the state as a whole. For electricity saves
the farmer time, labor and money. Its effective use
increases his real income through increased produc-tion
for home use and for commercial markets. It
makes possible the modernizing of rural community
facilities and services for better health, better educa-tion,
better recreation and the developmnt of new
rural industries.
In spite of the significant development in the rapid
expansion of electricity to our rural areas, only one-third
of our farms are now enjoying the benefits of
this source of power. The geographic distribution
of miles of lines indicates perhaps more clearly than
any other index the nature of the task which still
lies ahead. There is great variation among the coun-ties
of the state as to the number of miles of electric
PAGE 46 THE U. C. C. QUARTERLY SPRING, 1945
lines in operation. Some counties have scarcely any
lines, whereas others have several hundred miles of
rural electric power lines. Furthermore, the inade-quacy
of the distribution is indicated by a compari-son
of the number of miles of line with the number
of rural inhabitants per square mile.
An unelectrified farm survey is under way cover-ing
every county in the state for use in accomplishing
long time rural electrification objectives and as a
blueprint for postwar planning. These surveys and
maps are to be analyzed to delineate project areas,
establish the number of miles needed to complete
overall area coverage, and relate the effect of area
coverage and consumer density to financial problems
involved.
Based upon allotments already made and upon
applications now on file, it is estimated by the North
Carolina Rural Electrification Authority that during
the immediate post-war period as soon as materials
and labor are available, the municipalities, private
utilities and cooperatives plan to build approximately
20,000 miles of lines to serve about 75,000 users.
This will represent an investment of around $25,000,-
000 in line costs plus another $25,000,000 expected
to be spent by the users for house wiring, fixtures,
plumbing, etc.
Expected expansion of the use of electricity as
well as planned area coverage will require changes in
present systems and larger equipment. Consequent-ly
the accomplishment of the long time objective of
rural electrification—of bringing electric service at
reasonable cost to every farm and nonfarm dwelling
unit in North Carolina now without it and seeing
that it is put to us to afford farmers the maximum
benefits—poses a number of problems. These include
(1) completion and analysis of the unelectrified farm
survey, (2) redesigning systems due to anticipated
increased loads when equipment becomes available
and to obtaining greater area coverage, (3) investi-gating
as to the adequacy of power supply available,
(4) the question of costs, (5) expansion of agency
facilities, (6) office buildings and demonstration
rooms for the cooperatives, (7) purchase programs
for wiring and equipment.
In the midst of changing from a one or two cash
crop type of agriculture to a balanced combination
crop and livestock program, North Carolina is in a
very favorable position to take advantage of all new
developments in the use of electricity on the farm.
The two enterprises which lend themselves best to
mechanization through electrification are dairying
and poultry production. As indicated above, we have
already made tremendous strides in these two fields
and further progress is easily seen.
The production of fruits and vegetables, now in its
infancy in this state, can make use of electricity in
many important ways. New developments in sweet
potato curing and the production of flue-cured to-bacco
present fertile fields for electrical uses. The
sudden and widespread interest in barn-type hay
driers presents possibilities of untold extent. With
less than 20 freezer locker plants in the state and
the indicated interest of practically every community
in refrigeration, a great field is developing for elec-tric
service.
North Carolina stands sixth in the list of states
in the estimated number of potential consumers, and
likewise sixth in the estimate of postwar expendi-tures
on a complete rural electrification program for
the state which would require the enormous amount
of $125,699,000.
Can our 1,656,000 rural people living on 278,276
farms justify an expenditure of $125 millions for
rural electrification in the post-war period? Those
of us who have worked, planned, schemed—yes
—
and prayed for the many fine things that electricity
can bring to our farms and our farm homes believe
they can.
T. V. A. IN NORTH CAROLINA
BY MAURICE HENLE, INFORMATION CHIEF, TVA
Four of the 21 dams of the TVA multiple-purpose
power, navigation, and flood control system are in
North Carolina.
The greatest of these is Fontana Dam, towering
480 feet high in the gorge of the Little Tennessee
River, where two 67,500 kilowatt generating units
recently began adding to the wartime supply of elec-tric
power. The other dams are Hiwassee, Appa-lachia,
and Chatuge, all on the Hiwassee River in
North Carolina.
Three of the dams—Fontana, Appalachia, and
Chatuge—were authorized and constructed initially
for the purpose of providing electric power for na-tional
defense and war, but they fit into the broad
regional program of the TVA for the development
and wise use of natural resources in peacetime.
The dams are the most spectacular, but by no
means the only, evidences of the TVA program in
North Carolina. TVA concentrated phosphatic fer-tilizers
are being used on nearly 5,600 test-demon-stration
farms under the direction of the State Ex-tension
Service. Minerals researches have been
carried on in cooperation with state agencies, includ-ing
work on North Carolina kaolins, vermiculite,
olivine and mica. New and improved farm machin-ery,
developed by TVA independently or in coopera-tion
with Land-Grant Colleges, are in use on North
Carolina farms, and a North Carolina firm is manu-facturing
commercially a TVA-developed small
threshing machine. More than 11,600 acres of erod-ing
land has been planted with 13,500,000 seedlings
provided by TVA forest nurseries.
The first dam to be built by the TVA in North
Carolina was Hiwassee, which was placed in opera-tion
in 1940. This structure, 307 feet high, created
a reservoir 22 miles long with about 365,000 acre-feet
of regulated storage for control of the Hiwassee
River. In 1941, two additional dams were authorized
on the Hiwassee River—Appalachia, 10 miles below
Hiwassee Dam, and Chatuge, a storage dam on the
Spring, 1945 THE U. C. C. QUARTERLY PAGE 47
stream above. Chatuge Dam, with no power installa-tion,
was placed in operation in February, 1942,
while Appalachia Dam was closed in February 1943,
and power generation at the powerhouse 12 mlies
downstream was commenced in September 1943.
Water is carried from Appalachia reservoir to the
powerhouse through a tunnel eight miles long.
Construction of Fontana Dam was commenced
January 1, 1942, and the two generating units were
placed in operation early in 1945, only a little over
three years after start of construction.
Fontana Dam is the fourth highest dam in the
United States, being exceeded in this regard only by
Boulder, Grand Coulee, and Shasta, in the Far West.
About 2,800,000 cubic yards of concrete were re-quired
to build it. The Fontana reservoir, extending
29 miles upstream to Bryson City, North Carolina,
provides 1,127,000 acre-feet of useful controlled stor-age.
The dam and reservoir, authorized as a wartime
power project, is particularly valuable from a power
standpoint since water released through the turbines
at Fontana also helps produce electric energy at ten
additional dams and power plants on the Little Ten-nessee
and Tennessee rivers.
Besides the four dams which it has constructed in
North Carolina, the TVA directs the operation of
five dams owned by the Aluminum Company of
America, four of which are in North Carolina, so
that in all, 26 dams are operated virtually as a single
system. This integrated operation not only increases
power output, with the additional energy divided be-tween
TVA and the Company, but also strengthens
the flood control operations of the TVA.
At the present time, the TVA system is producing
more than 10 billion kwh a year, and about 75 per-cent
of the power is utilized by war industry.
Only a small amount of TVA power is distributed
in North Carolina, chiefly by the municipally-owned
system of Murphy, but, as TVA Chairman David E.
Lilienthal recently told civic clubs at Greensboro,
in an address there, "After the war an opportunity
will present itself for the factories and cities and
towns and farms of North Carolina to put a part of
this great pool of power to work for the ends of peace
and prosperity.
"But I ask you and the businessmen, the public
officials, the farmers and householders of North
Carolina and all other states to remember a basic
tenet of TVA—that TVA does not press its power
contracts upon anyone. If we did so—and we have
no intention of changing our policy in this regard
—
we could be justly criticized.
"The initiative, the decision to seek TVA elec-tricity
must come from the people, from their towns
and cities, their farm cooperatives and business en-terprises.
. . .
"Once, however, the decision to seek a greater use
of TVA power is made, independently, by the people
themselves, through their own spokesmen and repre-
This is Hiwassee Dam, the first to be built by TVA in
North Carolina. It was completed in 1940. The dam, 307
feet high, is a part of the TVA multiple-purpose system of
water control for navigation, flood control, and electric
power.
Chatuge Dam, on the Hiwassee River in North Carolina,
has no power installation, but water stored in its reservoirs
increases the power output of Hiwassee, Apalachia, and
other dams downstream. The dam was authorized by Con-gress
in July, 1941, and was completed in about seven
months.
Apalachia Dam, on the Hiwassee River in North Caro-lina,
was placed in operation in 1943 to help provide elec-tric
power for war. The water shown here rushing down
the spillway is now diverted through a tunnel eight mlies
long to the powerhouse downstream.
-
PAGE 48 THE U. C. C. QUARTERLY SPRING, 1945
Here is a view of one of the nearly 5,600 test-demonstra-tion
farms using TVA concentrated phosphate fertilizers in
North Carolina. The test-demonstrations, under the aus-pices
of the State Extension Service, are designed to show
by practical experience the value of soil minerals in promot-ing
soil conservation and increased farm prosperity.
sentatives, then you can rest assured that the TVA
in the future as it has in the past, will cooperate to
the fullest in translating your decisions into accom-plished
fact.
"The initiative and decision are yours, not ours.
But from that point on, whether the subject is min-eral
development, forestry, recreation, industrial de-velopment,
farm development, or electric power, all
the resources of the TVA's technical staff, its experi-ence,
and most important of all, its desires to further
the interests of the people of this state, whose ser-vants
we are, are at your disposal."
The Murphy municipal system has been distribut-ing
TVA power since November 8, 1939. The intro-duction
of TVA rates for electricity brought initial
savings of about $19,500, including about $8,600 to
residential consumers.
Low rates brought about increased use of elec-tricity
as shown by the fact that in 1944 residential
consumers used an average of 1,996 1 vvh, or more
than 70 percent above the national r 'Jential aver-age
of 1,151 kwh per customer. During 1944, Murphy
residential consumers paid an average of 1.69 cents
per kwh, or less than half as much as the national
average of 3.51 cents per kwh for residential service.
At the same time, the municipal electric system
has been financially successful at low rates. In the
fiscal year ending June 30, 1944, gross revenues
amounted to about $45,900 and the net income, after
providing for all expenses applicable to the fiscal
year operations, amounted to $11,400.
Expenses of the system included $17,400 paid to
the TVA for wholesale electric power. The system
also provided for $2,200 in payments in lieu of taxes,
$3,500 for depreciation, and $2,400 interest on the
long term debt of the system.
FOINTANA
BY BILL SMARPE, STATE NEWS BUREAU
First reaction of rubberneckers who get a glimpse
of TVA's new Fontana dam and lake in western
North Carolina is "my gosh!" And because the
American people have a particular fondness for ex-clamatory
sights, state travel officials think that
some 1,500,000 people a year are going to my-gosh
at Fontana after the war. Such a crowd would make
it the most popular single attraction in the South.
The estimate is not based on wishful thinking. A
people preoccupied with an admiring of engineering
grandiosity already have proved by their attendance
that a big power dam is as much a tourist attraction
as anything else. In 1941, 1,300,000 people visited
TVA's first-born—Norris Dam in Tennessee, and in
eight years, over 11,000,000 people were counted as
gazing at TVA's various projects.
The prophecy that Fontana is so likely to outdraw
the others is based partly on our national passion for
superlatives. Fontana rises 480 feet above bedrock
and is the highest dam in eastern America and
fourth highest in the world. Its construction involv-ed
all kinds of engineering novelties which TVA
plans to explain to visitors via an information booth
at the dam.
But aside from that, the lake is a setting of natural
beauty, remote from disturbing civilization, and at
a refreshing altitude. Rimmed by peaks which
ascend 2,000 to 3,000 feet higher than the lake level,
the lake also borders the Great Smoky Mountains
National Park, which in 1941 itself drew 1,500,000
people. It does not appear unlikely that TVA's man-made
gadget will become, singularly enough, the
wilderness park's greatest drawing card.
Anticipating this flood of sightseers when the site
is thrown open to the public, TVA currently is trying
to interest some agency in what might become the
largest single resort unit in this country. There are
no facilities nearby and TVA would like to see the
construction village preserved to accommodate the
visitors.
The village contains hundreds of prefabricated cot-tages,
equipped with stoves, some furniture, plumb-ing
and wiring. It also has tennis courts, a hospital,
a school, paved streets, and all the minor accoutre-ments
of a modern town.
Nearby, and close to the dam, is also a construc-tion
camp containing dormitories, a large cafeteria,
community buildings, and recreational halls. The
dormitories will be dismantled as fire hazards, but
TVA is anxious for the rest of the camp to be utilized
as a recreational center supplementing the village.
The State of North Carolina has been asked to con-sider
the camp as a state park, aside from develop-ment
of the village itself.
Spring, 1945 THE U. C. C. QUARTERLY PAGE 49
It is at the camp site, which borders the lake shore
line, that TVA anticipates construction (by someone)
of a boat harbor, launching ramp, picnic areas and
perhaps a swimming pool. The lake itself, sharply
sloping to a depth of 400 feet, is considered unsuit-able
for swimming at the dam head. It suggests the
cafeteria could be converted into a recreational hall,
providing indoor games, dancing, etc.
TVA is making its own plans to show its handiwork
to its constituents. Access roads probably will be
built up the rugged slopes into which is anchored
the dam, and an observation platform will give cam-era
fans a thrilling vantage point for the millions
of snapshots which will inevitably be taken home.
From the top of the dam a novel cable tramway will
drop visitors down into the power house. There,
on a special visitors' ramp, sight seers can watch
the turbines at work and see other processes in
hydro-electric generation. The terrain around the
land is being scoured out now in a landscaping
project.
The lake alone is expected to provide sport enough
to hold visitors once they have been sated by the
dam. Hundreds of boats will be operated from con-venient
docks, and fishing, as in other TVA dams, is
expected to be attractive. Summer-long cottage
occupancy is visualized.
All but 1,500 of the 5,000 people who once lived in
Early in 1944, two generating units of 67,500 kw capac-ity
each commenced operation at Pontana Dam, 48 0-foot
concrete structure on the Little Tennessee. The reservoir
behind this dam has more than 1,100,000 acre-feet of useful
storage for use through 11 hydro-electric plants on the
Little Tennessee and Tennessee rivers. Head at this dam
ranges from a maximum of 43 3 feet to a minimum of 248
feet.
the village and camp have gone, and dismantling of
the facilities to be abandoned is going forward rap-idly.
Public visits now are restricted for security
and safety considerations.
Meantime, would you like to lease a nice little mod-ern
city?
Can Na C. Industry Absorb the Labor Surplus?1
By Silas f. Campbell, Chief, bureau of research and Statistics
It was asserted by Mr. Paul G. Hoffman, President
of the Studebaker Corporation, and Chairman of the
Committee for Economic Development, that pro-ductivity
must be increased by one-third over the
1940 level in order to provide jobs for the seven to
ten million workers who may be expected to become
unemployed upon the termination of the war.
Similar views have been expressed by others who
have gathered much data and have made exhaustive
studies of possible post-war trends. If this is a
sound promise it may be assumed that, since unem-ployment
in North Carolina has during the last de-cade
remained consistently about 20 percent below
the national level, it would only be necessary for
North Carolina industry to increase the 1940 level
of production by 26.67 percent, or 80.00 percent of
the 33.34 percent increase required of the nation.
Upon such an assumption it will be of interest to
compare the present position of North Carolina in-dustry
with the level of 1940, to determine what
types of activity are above the 1940 level, where and
what amount of loss could be sustained in present
production and still maintain the necessary increase."
COTTON TEXTILES
No doubt the most understandable comparison can
be made of the changes in actual volume. Cotton
consumption in 1943 was 35 percent above the 1940
level. Therefore, it could sustain a decline from the
1943 level of 6.18 percent and still exceed the 1940
level by 26.67 percent, and according to the views of
economists, modified by our own experience, this
would be sufficient to remove the danger of unem-ployment
in cotton textiles.
It may be just as well to ask whether cotton
textiles may be expected to maintain such a level in
the post-war period. First, of course, is the problem
of the extent to which synthetic fibers may replace
cotton. Generally speaking the same machinery
might be used but such a change would inevitably
involve a redistribution of labor in manufacture and
a serious reduction in agricultural labor. Un-doubtedly
cotton will be supplanted in some of its*
uses by synthetic fibers which have been proved
superior for certain purposes. However, cotton fibers
also have been the subject of laboratory experiments,
and it is claimed that it is now possible to add as
much as 50 percent to the tensile strength of cotton
fiber by coating it with a newly developed solution. (3)
Assuming that cotton holds its own at least during
the unsettled period of reconversion, it is possible to
estimate what pressure will be needed in this in-dustry
to achieve the necessary trend.
Indexes of cotton consumption in North Carolina
computed by the Bureau of Research and Statistics
of the Unemployment Compensation Commission, for
the period 1913 to 1939 indicated an annual incre-ment,
compound interest basis, of 2.80 percent over
a period of 27 years. However, annual increase
PAGE 50 THE U. C. C. QUARTERLY SPRING, 1945
since 1930 was much greater than for the 17 years
which preceded.
The average annual increase from 1930 to 1940
was 6.25 percent. Since this period bridged a com-plete
business cycle, including an unprecedented de-pression,
there is little reason to assume that had the
war not intervened this rate of increase would not
have been maintained. On this premise the 1943
level would have been 18.75 percent above 1940 with-out
the stimulus of war production. Since the 1943
consumption was actually 35.00 percent above 1940,
it appears that war contracts may have bolstered
normal production only by the difference between
18.75 percent and 35.00 percent or by 16.25 percent.
It is clear, therefore, that in order to maintain
production at 26.67 percent above the 1940 level, a
new demand must be found which is beyond what
would have existed under normal conditions in order
to prevent a decline from the 1943 level of more than
6.18 percent. If the required level cannot be main-tained
with the buoyance of war contracts to support
it, can it be done when that support is removed?
Not unless accumulated consumer demand exceeds
present war demands. This is a possibility, but once
the slack is taken up there is little reason to expect
that the upward slope of the demand curve will be
more pronounced than during the last decade unless
exportation of cotton goods is encouraged by some
means other than the government purchase of cotton
at full parity, while permitting the Commodity
Credit Corporation to export cotton at a price which
is less than that the North Carolina manufacturer
must pay in competition for raw material.
ELECTRICAL ENERGY PRODUCTION
Applying the same sort of analysis to the produc-tion
of electric current, it is found that a loss of
17.85 percent from the 1943 level could be sustained
and yet maintain a lead of 26.67 percent over 1940.
The production in 1943 was 54.18 percent above the
1940 level, and here again it is pertinent to observe
what production might have been in the absence of
war stimulus. The trend for the period 1920-1939
indicated an annual increase (compound interest
basis) of 9.30 percent, which means that under
normal conditions 1943 presumably would have been
27.90 percent above 1940.
On this basis the normal upward slope of the pro-duction
curve would be sufficient to absorb the ex-pected
post-war deficiency in employment with 1.23
percent to spare. With modern inventions, con-veniences
and increased adaptability of electricity to
commercial and industrial uses there is little reason
to doubt that the trend of the past 20 years pre-ceding
1940 will be maintained for some time, for
gains have been consistent and continuous.
CIGARETTE PRODUCTION
Data represent tax paid withdrawals, but over a
period of years they are safe as a measure of pro-duction.
A post-war decline of 11.20 percent would
be permissable on the basis of a 26.67 percent lead
over the 1940 level. The 1913-1939 trend indicated
an annual increase (compound interest basis) of 7.60
percent, which means that without the stimulus of
war demand 1943 production would have been 22.80
percent above 1940, and to maintain a level 26.67
percent above 1940 would leave an additional increase
of 3.87 percent to be supplied by some demand not
indicated by past experience.
CEMENT SHIPMENTS
This series is important only as it reflects activity
in building, street and road construction. Since
practically all highways and streets are in bad repair
as a result of neglect during the war, and private
building is under severe restrictions, there is little
doubt that for some time cement shipments will ex-ceed
the 1940 level by much more than 26.67 percent
especially since the index for that year on a basis of
long time trend was only 87.38. It would be neces-sary
to increase the 1943 level only 5.86 percent in
order to maintain the 26.67 percent lead over 1940.
CONSTRUCTION
In no other activity of the state is the normal
reservoir of labor as large as in construction. This is
an essential characteristic of job-to-job industries,
and while there is every reason to believe that the
tremendous back log of construction projects both
residential and industrial that will clamor for labor
as soon as restrictions are removed will carry the
construction industry to heights not known before
the war, it is doubtful whether it can or should re-sult
in full employment. The activity is highly
seasonal with fluctuations simultaneously in opposite
directions depending upon geographic and industrial
characteristics of the area.
In 1943 construction was only 13.11 percent above
the 1940 level. However, in this state war construc-tion
began in August, 1940 and while the index for
that year was only 13.20 percent above the long time
trend, it was 48.24 percent above the 1935-1939 aver-age,
and in 1943 was 70.63 percent above. It seems
probable, therefore, that with only such post-war
construction as can now be forseen, employment will
construction as can now be foreseen, employment will
tremendous road construction program of the twen-ties
resulted in a declining trend for the period 1924-
1939. An upward swing was just getting under way
when the movement was accelerated by war con-tracts,
and it may be expected that this upward
movement will continue by its own power under a
pre-war momentum.
F URNIT LIRE SHIPMENTS
Like many other activities the manufacture of
furniture has not been permitted to respond to the
normal demand, yet, based on the indexes of identical
reporting firms business in 1943 was 42.17 percent
above the 1940 level, and while data are not at hand
to determine what the trend over the past decade
has been in dollar volume, year to year indexes indi-cate
that continued growth and expansion may be
expected. The industry could suffer a decline of
10.92 percent from the 1943 level and still maintain
a 26.67 percent lead over 1940. No North Carolina
industry has made greater strides during the past
decade than furniture manufacture. Within 125
miles of High Point is the greatest concentration of
SPRING, 1945 THE U. C. C. QUARTERLY PAGE
furniture manufacturing in the world, including the
two largest furniture manufacturers in the world. (4)
With all of the recent developments in adhesives,
plastics and plywood the outlook for this industry is
altogether optimistic.
EMPLOYMENT AND PAYROLLS
The Unemployment Compensation Commission
covered 86.20 percent of the non-agricultural labor
force in 1940 exclusive of government and non-farm
domestic labor, and covered 89.50 percent in 1943. (5)
This indicates that covered employment in 1943 was
21.51 percent above the level of 1940. (6) This is short
of the required 26.67 percent lead over 1940 by 5.16
percent. The average of covered employment in
1940 was 474,872. An increase of 26.67 percent
would bring it to 601,473, but this would still leave
approximately 49,000 non-agricultural workers to be
provided for in addition to returned service men. (7)
One of the brightest hopes of increasing post-war
employment lies in the possibility of a greater in-dustrial
utilization of North Carolina farm crops.
Laboratories have found many new uses for farm
products in connection with war needs, such as the
manufacture of penicillin, rubber, industrial alcohol,
smokeless powder, plastics, industrial proteins, es-sential
drying oils, automobile tire cord, synthetic
fibers, tanning materials and many others. It is
stated that normally this country imports two-thirds
of its vegetable tanning materials, yet the plants
from which these materials are derived grow pro-fusely
in North Carolina.
Other North Carolina farm products in which lie
great industrial possibilities are : sweet potatoes for
the production of industrial starch ; peanut hulls and
cornstalks for the production of a cork material for
bottle capping ; corn and wheat for the production of
anti freeze, solvents, butadiene and synthetic rubber
;
peanut and cotton seed meal for the production of
protein glues ; ground corn-cobs for the production
of a sand-blast material, ground vegetable leaves for
the production of a protein poultry feed, and many
others. It is said that eleven hundred persons,
mostly trained chemists, are now at work on more
than 160 projects dealing with the industrial use of
agricultural products. (8) It is difficult to visualize
the possibilities of increased employment that may
grow out of these experiments.
It is generally recognized that industries now
operating under the Unemployment Compensation
law employ the bulk of the productive labor of the
state although they account for only 43.26 percent
of the entire labor force of the state. It seems
obvious, therefore, that even should productivity be
increased by 26.67 percent over the 1940 level, which
seems possible for some industries, the problem is
one that cannot be handled wholly within the present
industrial set-up. The foregoing projections point to
the conclusion that the problem will call for new
incentives, new industries, and new jobs to supple-ment
the best efforts present industry can put forth.
Moreover, the question of occupational fitness must
be considered. In the depression of the thirties
frequent surveys disclosed that less than 12 percent
of the unemployed were skilled workers, and the
future demands of industry may be expected to be
more exacting as to skill than in the past. However
willing industry may be it cannot utilize at a profit
those who will not fit themselves for profitable work.
AGRICULTURAL PRODUCTION
Approximately sixty percent of the land area of
North Carolina is devoted to agriculture in which
more than 400,000 of the gainful workers of the
state, or more than thirty percent of the entire labor
force, are employed.
The challenge for increased utilization of farm
products through manufacture, if accepted, will
furnish the incentive for increased agricultural pro-duction.
It is of interest, therefore, to determine
what the trend has been since World War I in the
money crops of the state, as a means of estimating
possible future development. From data furnished
by the North Carolina Department of Agriculture
trends have been calculated for eleven of the most
important crops from 1920 to 1944, except for pota-toes,
1929-1944, milk production, 1924-1943, and
poultry and egg production, 1925-1942.
For most crops the index covers the period im-mediately
following the last war and it is noteworthy
that for most of them there was a decided decline.
For some crops this downward trend was reversed
early in the thirties. For others it extended well up
to 1940.
There has been much comment about the tre-mendous
crops during these last war years. How-ever,
except for 1944, the figures for which are pre-liminary,
there appears to have been only a limited
upswing in production. Cotton production was
below the 25 year trend in both 1941 and 1943. Flue-cured
tobacco was under the trend of 2.82 percent
annual increase from 1940 to 1943, and Burley
Tobacco was below the trend in 1940, 1941 and 1942.
(1) Note: Any opinions expressed herein are those of the
author and do not necessarily reflect the view of the
Commission.
(2) For a more detailed analysis of material in this section,
see U. C. C. Bulletin, Current Business Trends, for Sep-tember,
1944.
(3) From "Revolutionary Changes Lie Ahead in Textiles,"
Manufacturers Record (Nov., 1944).
(4) "Southern Furniture Leads the Nation," Manufacturers
Record (Nov., 1944).
(5) See Unemployment Compensation Commission Biennial
Report 1942-1944.
(6) Employment in manufacture in North Carolina increased
between 1940 and the peak year of 1942 by 21.05 percent,
whereas, according to data of the Cleveland Trust Co., the
increase for the United States exceeded 50.00 percent.
(7) The total non-agricultural labor force of the state in
December, 1943 as reported by the United States Depart-ment
of Labor, exclusive of government and non-farm
domestic labor was 651,000.
(S) O. E. May, Chief of Agricultural and Industrial Chemistry,
United States Department of Agriculture, Manufacturers
Record (Nov., 1944).
DIGEST OF COMMISSION DECISIONS
Thanks to the painstaking work of Mr. J. V. Soden,
Senior Claims Examiner, the Commission now has
both a Digest and an Index of all its past decisions
regarding benefit payments. The Digest as compiled
covers decisions from No. 1 to No. 600, inclusive.
Supplements will be issued from time to time, as
further decisions of the Commission are made, in
order to keep the index and digest up-to-date.
PAGE 52 THE U. C. C. QUARTERLY SPRING, 1945
Ue C. C. Operations
UNEMPLOYED VETERANS—SIX
MONTH REPORT BY U. C. C.
Veterans of this war, temporarily unemployed,
received $243,831.00 in readjustment allowances un-der
the G. I. Bill of Rights during the first six-month
period of operations. In North Carolina, the G. I.
readjustment allowance payments of $20 a week are
made by the Unemployment Compensation Commis-sion
for the Veterans Administration.
The number of individual veterans receiving al-lowances
while waiting to find employment had in-creased
each month through January when an aver-age
of 791 veterans were paid each week. During
February, the average number of veterans receiving
the weekly payments dropped to 598.
The report for February, the last in the six-month
period, reflected a general decrease in veterans
claims. A total of 410 initial claims and 3,051 con-tinued
claims were processed during that month,
whereas in January veterans filed 510 initiial claims
and 3,827 continued claims.
It is estimated that altogether about 325,000
North Carolina service men and women will be elig-ible
for these allowances, since veterans who have
served 90 days or more in the armed forces and re-ceived
honorable discharges are entitled to receive
them, up to a maximum of 52 weeks, based upon
their length of military service. These allowances
provide financial aid during the interim of a veteran's
discharge from service and his employment in suit-able
work.
It is apparent that relatively few of the veterans
who have returned to the state to date—probably
around 25,000—have made applications for readjust-ment
allowances. Presumably many veterans who
are finding employment reasonably soon, or are re-turning
immediately to former jobs, prefer to con-serve
their readjustment allowance rights, to which
they are entitled for two years following discharge
from the service or two years after the termination
of the war, whichever is the later elate. There may
also be a good many unemployed veterans who do
not realize that readjustment allowances would be
available to them upon application to the Unemploy-ment
Compensation Commission.
Applications to the Commission for readjustment
allowances may be made at any of the offices of the
U. S. Employment Service located throughout the
state.
The Commission's six month report on the G. I.
allowance also listed expiration of entitlement for
two veterans, and a total of 63 claims filed by vet-erans
on an interstate basis. Interstate claims are
subsequent claims filed by veterans who have left
North Carolina, after having first received readjust-ment
allowances here. These claims are filed in other
states and forwarded to North Carolina for payment.
Under another phase of the G. I. program making
aid available for self-employed veterans whose trade,
business, profession or vocation yields them net earn-ings
of less than $100 in any month, the Commission
handled claims for a total of 203 veterans during the
first half year of operations. More than half of these
self-employed veterans made their first application
for allowance payments during the month of Feb-ruary.
Claims of this type are taken by the Commis-sion
through the local employment offices, but are
forwarded to the Veterans Administration for pay-ment.
A two-day meeting of' the Unemployment Compen-sation
Commissioners held in the office of the Chair-man,
Col. A. L, Fletcher who presided, came to an
end when the final case brought up for their decision
had been heard.
Twelve cases in all were presented, some involving
questions of the liability of employers and others
involving issues surrounding the payment of bene-fits
to claimants. In the latter group were three
labor dispute cases in which claims had been filed
by a total of 627 workers. Payment of benefits to
these workers was denied on the ground of their re-lation
to strikes which caused the unemployment.
Cases of claimants who appeal from such determina-tions
are heard by the Commission.
The cases heard at this session arose as the result
of strikes that occurred at the Proximity Cotton Mill
in Greensboro (December—425 claims filed), at the
Cocker Machine Co. of Gastonia (January—88 claims
filed), and the Jordan Spinning Co. of Cedar Falls
(January—114 claims filed).
The Unemployment Compensation Law carries a
provision that disqualifies a worker for benefit pay-ments
when it is found that his unemployment is due
to a stoppage of work which exists because of a labor
dispute, unless he can show that he is in no way
directly interested in the dispute and does not belong
to a grade or class of workers some of whom are par-ticipating
in or have an interest in the dispute. The
denial of unemployment insurance payments rests on
the application to the facts as brought out by the
evidence of interpretations of "labor dispute", "stop-page
of work", "participating in", "grade or class of
workers", etc. The Commissioners all agreed that
under our law, the labor dispute cases which have
been presented to them so far, have required them
to uphold the earlier determinations of the Commis-sion's
claims deputies denying benefits.
The balance in North Carolina's unemployment in-surance
fund rounded the figure of $100,000,000 at
the end of the first quarter. This trust fund of 100
millions represents payments which have been made
by over 10,000 North Carolina employers to assure
their workers of some income in place of loss of
wages during periods when they might be out of a
job through no fault of their own. The present bal-ance
is the difference between all sums received from
Spring, 1945 THE U. C. C. QUARTERLY PAGE 53
employers plus $6,117,882.00 in interest earned, and
all sums paid out to unemployed workers.
Under the terms of the Unemployment Compensa-tion
Law, all job insurance contributions from em-ployers
are transferred to the United States Treas-ury,
where they are held in interest-bearing securi-ties,
either of or guaranteed by the United States.
The present law provides that withdrawals from de-posits
made to the account of North Carolina may be
made only for the purpose of paying unemployment
benefits to workers released from covered employ-ment
in this state.
Increased war-time payrolls have resulted in larger
employer contributions to the fund. At the same
time many more workers have been having wage
credits reported to their unemployment insurance
accounts. It is expected that the number of individ-ual
workers for whom the Commission will have pro-cessed
wage records this year will total well over a
million.
More than 300,000 North Carolina men and women,
temporarily without jobs, have benefited by receiving
$25,000,000 from the unemployment compensation
program so far. April, 1945, concluded the eighth
year of accumulations to the unemployment trust
fund. Payments from this fund, in the form of ben-efit
checks to those entitled to receive insurance pay-ments
for unemployment, have amounted to $25,-
000,000, leaving a net balance available for the future
of $100,000,000.
At the present time, with industrial war expan-sions,
labor replacements of workers now in military
service, etc., the active insurance accounts which
the Commisison maintains for individual workers,
number well over a million. In other words, more
tnan a million North Carolinians, because of pay-ments
made by their employers to the Commission,
have a stake in the fund. This $100,000,000 reserve
balance represents their protection against post-war
unemployment.
At one time in the history of the Commission, as
many as 140,000 jobless workers were drawing ben-efit
checks, but the claim load has dwindled steadily
since this country embarked on war production. By
June of 1942, the number of unemployed had fallen
below any previous level, to an average of 7,000. The
number continued declining, with almost every
month signalling a new low in unemployment,
through December of last year.
In that month, the number of unemployed, as indi-cated
by an average of 400 weekly benefit checks
paid throughout the state, probably touched bottom.
About half of the local employment offices had been
reporting no new claims.
The total amount of benefit payments for the first
quarter of 1945 was $84,125.71. This was consider-ably
less than the $446,204.87 which was added to
the fund by the way of interest earned during the
same period.
In the opinion of employment security administra-tors,
in Washington and throughout the nation, the
adequacy of the unemployment compensation pro-gram
faces its first real test in the post-war period.
With its $100,000,000 reserve fund, and with its ma-jor
industries capable of re-conversion to peace-time
production within a comparatively short time, judg-ing
by the speed with which these industries changed
over to meet war production demands, North Caro-lina
is believed to be in a relatively favorable position.
SEASONAL WORKERS MAY
LOSE BENEFIT RIGHTS
—
The unemployment benefit rights for seasonal
workers may be limited in the future, following ac-tion
by the General Assembly in approving an
amendment of the U. C. Law which went into effect
March 14th. Under this amendment, out-of-season
unemployment, under specified conditions, in certain
industries, or their branches, may be made non-com-pensable.
The amended law would enable employers in sea-sonal
industries to establish with respect to all or
only part of their business a special period, or season,
of insured employment of less than a full calendar
year.
Workers who lose their jobs within this specified
period, may draw unemployment compensation for
jobless weeks while the season lasts; but in the off-season,
unemployed workers will not be entitled to
draw benefits chargeable to their seasonal employer.
It is expected that employers engaged in such en-terprises
as tobacco processing and the resort hotel
business may wish to take advantage of the amended
provision. By doing so their reserve accounts in the
Commission's trust fund would be relieved of charges
due to unemployment of their former workers during
the industries' off-season.
The new provision removes the requirement
formerly in the law that an offer of work from season
to season will have to be made. It stipulates that
an employer who wishes to have his business, or a
part of it, declared seasonal must apply to the Com-mission
to establish such a season with respecf to
unemployment compensation.
The season must not be longer than 36 weeks. Reg-ulations
prescribe the manner in which application
for a seasonal classification of an employer should
be made, and define what such an application has to
show as to the amount and kind of employment so
that the Commission may determine when this is
seasonal within the meaning of the law.
The effect on workers will be to reduce the possi-bility
of drawing unemployment benefits during their
off-season and encourage them to find work of other
kinds during that period.
SMALL BUSINESSES HELPED
MOST BY EXPERIENCE RATING
That it is the small operator rather than the large
that gets unemployment protection for his employees
at the least cost is demonstrated by an analysis of
employer tax rates made by Silas F. Campbell, chief
of the Bureau of Statistics of the U.C.C. Mr. Camp-bell
concludes that since all employers who obtained a
minimum rate of .27 percent of payroll for 1945 had
an average payroll of $32,400 compared to an aver-age
for all employers of $78,800, that the small busN
PAGE 54 THE U. C. C. QUARTERLY SPRING, 1945
ness operator and his employees would tend to bene-fit
most by an extension of unemployment compen-sation-
coverage to employers of fewer than eight
workers.
The rate analysis shows that operators with a re-duced
tax rate of .65 percent had payrolls averaging
$35,600. Those with a rate of 1.02 percent had an
average payroll of $53,900. Employers with a tax
rate of 1.39 percent have an average payroll of $105,-
400; those with a rate of 1.76 percent have payrolls
averaging $113,000 ; and those who pay at the rate of
2.13 percent have payrolls averaging $154,000. Thus
the smaller operators tend to benefit most from em-ployer
experience rating provisions in the Unemploy-ment
Compensation Law.
This pattern follows the experience in other states
where unemployment compensation coverage includes
the smaller businesses, in that they share in reduced
tax rates to a greater extent than do the larger
operators.
Of the 277 firms in the state which had a minimum
rate of .27, 196, or 70.7 percent, were either in the
merchandising or sawmilling business. Since the
size of payroll fairly reflects the volume of employ-ment,
it is apparent that an extension of coverage to
the small operator would result in the maximum
benefit to be derived from the unemployment com-pensation
program with a minimum burden upon the
main street and cross-roads operator, whose em-ployees
suffer just as much when they become unem-ployed
as those of the million dollar corporation.
North Carolina To Have Display Of Its War Products
BY M. R. DUNNAGAN
All articles produced and processed by hundreds
of employers in North Carolina during the war period
as contributions to the war effort are to be collected
and properly displayed as a permanent exhibit in the
state's Capital City for the information and pride of
present and future generations.
Assurance has been given that producers and pro-cessors
will gladly furnish the many items produced
in the state, or models of articles too large for inclu-sion
in a permanent exhibit, and Governor R. Gregg
Cherry has agreed that he will accept the collection
on behalf of the state, thus assuring the success of
the movement. The plan for this permanent exhibit
suggests that it will be a splendid method of showing
the people of North Carolina, now and in the future,
the extent of this state's participation in the war
effort from an industrial viewpoint.
W. Kerr Scott, State Commissioner of Agriculture,
under whose direction the already extensive State
Museum is maintained, has given assurance of his
interest in the proposal and assistance in handling
the exhibit. He suggests that such an exhibit would
be a valuable asset to the State Museum or the State
Fair, in connection with the extensive plans for the
future development of the State Fair grounds and
buildings on a permanent basis.
The plan has the further approval of the members
of two important war committees, members of which
exercise control over war production problems as
representative of federal procurement agencies, the
Production Urgency Committee and the Manpower
Priorities Committee—whose chairmen, Thomas J.
Love and Dr. Dorton, head the War Production Board
and the War Manpower Commission, respectively, in
North Carolina. The plan also carries the approval
of the State Management-Labor Committee of North
Carolina, representing employers and workers.
Naturally, it will be necessary for the producers
of war and war-supporting items in North Carolina
to make contributions of the items they produce,
carrying the names of the producers, method and
extent of items produced, their use and other infor-mation,
some of which must wait until the war with
Japan is over, in order that military information may
not be disclosed prematurely.
The cases in which the items produced or pro-cessed
are too large or heavy for inclusion in the
permanent exhibit, manufacturers or processors will
be asked to prepare miniature models containing the
essential features and materials of the items. Inplud-ed
in these would be the airplanes made in Burling-ton,
Liberty Ships and other types made at Wilming-ton,
New Bern, Manteo, Elizabeth City, Plymouth
and other places; steel oil barges in Raleigh; long
torn gun barrels, and other items in various parts
of the state.
A recent survey showed that 151 North Carolina
firms are engaged in producing war items or services
that were on the national and state "must" lists
—
highly urgent in war needs. Still others are making
numerous other war items that are more nearly on
schedule and therefore are not placed on the higher
priority lists. However, these are or have been just
as important to the prosecution of the war.
Naturally, cotton textiles, in which this state was
a leader already, include many of the "must" items.
Recently, cotton textiles have been placed in high
priority position, second only to vitally urgent secret
items. Cotton duck for tents, half shelter, stretch-ers,
ammunition belts and other purposes, is near
the top in urgency. Insulating yarns, parachute
yarns, tire cord and other items are also in great
demand.
The recent survey showed that 127 firms in the
"must" list are producing textile items and mate-rials.
Duck yarns are produced in 49 plants and in
47 plants insulating yarns are produced, while tent
twill is made in 16 plants. Seven firms are making
duck tenting, or cloth, one makes duck tents and an-other
shelter halves. Tire cord yarn is produced in
five plants, while in others products include high
tenacity rayon, nylon tent cloth, nylon duck, nylon
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 55
ski-tent cloth, fragmentary bomb parachutes and
cable yarns.
Two or three plants each are engaged in producing
rockets, rocket bodies, barrels for guns, shells, gun
mounts and bomb parts, specific items including
bomb shell noses, bomb nose fuses, bomb caps, bomb
clusters, bomb fins and bomb fin assembly, and pig
lead, soft lead and antimonial lead.
One of the greatest items developed during this
war, radar, has an important place in North Carolina
production, seven plants are producing some parts
of this highly secret device. Included are one plant
listing just radar and others producing radar air-borne
parts, radar landborne gears, special radar
parts, and anti-radar alumnium foil.
Airplanes in the past have been produced in this
state, while a dozen plants are now engaged in some
form of aircraft production, modification, assembly
or processing. Six installations are engaged in air-plane
maintenance, three in airplane modification,
two in airplane assembly, two in producing parts and
components and one in producing propeller parts.
Ship and boat building has been and continues an
important industry along the Atlantic seaboard as
well as further inland. More than 100 Liberty ships
for cargo purposes and many of other types are built
at Wilmington, while a variety of other seacraft is
produced at other eastern ports and elsewhere in the
state. Other firms are engaged in making ship parts
and in outfitting ships.
Gathered together, all of these items and many
others about which little has been heard, will make
an exhibit that will be a revolution to every citizen
in North Carolina. In fact, most of the people of
the state will be astounded at the extent of war pro-duction
that has been going on around them.
This has been demonstrated on a smaller scale by
the displays of these items and materials in store
windows and theater lobbies in several communities
in North Carolina in recent months. Even workers
in the plants producing many of the items were sur-prised
at the extent of their own operations, to say
nothing of other people in the communities. Greens-boro,
Winston-Salem, Charlotte, Asheville, Hender-sonville,
Brevard, Lincolnton, and Raleigh are only
a few of the communities in which local products
have been displayed—to the utter amazement and
gratification of the local people.
Dr. J. S. Dorton, State Director for the War Man-power
Commission, outlined the plan for the perma-nent
exhibit, as follows
:
"The War Manpower Commission in North Caro-lina
is now collecting from all manufacturers and
processors specimens of war products being made
in the state. We feel that such a collection of war
materials will do much to stimulate morale of all
North Carolinians who have contributed so whole-heartedly
to the cause of freedom.
"While it is fairly well accepted that North Caro-lina
has done a good job in producing for the war
effort, few people realize the importance and magni-tude
of the job that has been done, and for this
reason we are attempting to collect material evidence
of the quantities produced.
"When finally collected and properly assembled
and displayed, such an exhibit will be of great value,
particularly as an historical reminder of North Caro-lina's
civilian contribution in man hours, materials
and products to this total war, and will, I feel sure,
be a revelation to the people of our state and a source
of great pride to our returning veterans and heroes,
and our younger and future generations.
"Since such a collection will have tremendous
value, the War Manpower Commission would like to
turn this exhibit over to the State of North Carolina,
after the cessation of hostilities, in order that it may
be preserved permanently and exhibited as a part
of the State Museum and /or the State Fair, since we
are contemplating a permanent State Exhibit of all
state products and resources in our new long-range
expansion plans for the State Fair.
"Your acceptance of such a collection on the part
of the state will do much to aid us in collecting these
valuable materials, since the donors would then be
assured of its permanent protection and preserva-tion."
Governor Cherry replied to this letter as follows:
"It has been brought to my attention that under
the supervision of your office, there is being collected
and properly assembled for display an exhibit show-ing
North Carolina's contribution in man hours, ma-terials
and products of the present World War. I
feel that this is a worthy undertaking that should
be preserved permanently.
"I will be glad to accept this exhibit on behalf of
the state and undertake to work with your office in
providing a suitable permanent place where the same
may be exhibited for the information of our citizen-ship."
N. C. BUSINESS INDEX
The North Carolina business index for April (lat-est
month for which figures are available) dropped
to 128.85, a decline of 4.26 percent from March. The
weighted index for April (considering the 1935-39
average as 100) stands at 165.78, or 65.78 percent
above the five-year base average.
The figures are compiled by S. F. Campbell, statis-tician
for the U. C. C. at Raleigh.
The April trend is attributed largely to decline in
cigarette production by 8.51 percent; a decline of
15.71 percent in furniture shipment, a 34.06 nose
dive in department store sales, a 9.98 percent decline
in cotton consumption in the textile industry.
On the other hand, there was a sharp upturn in
electrical energy production, a gain of 6.38 percent
in gasoline sales, and a gain of 2.36 percent in sales
of ordinary life insurance.
While employment and payroll data are not con-sidered
in computing the index, Campbell notes that
"payrolls have shown a decline in three of the last
four months, after a consistent upward trend since
1940. On the other hand, employment has been on
the decline since 1942, and is now 23.30 percent be-low
the 1932-39 trend, and 0.24 percent below the
1935-39 average." For the first time during the war,
both employment and the wages are below the level
of the previous year.
Publications of Unemployment Compensation Commission of North Carolina
Biennial Report, 1936-1938.
Biennial Report, 1938-1940.
Biennial Report, 1940-1942.
Biennial Report, 1942-1944.
Annual Report, 1937. (Mimeographed.) Out of
print.
Annual Report, 1938. (Mimeographed.) Out of
print.
Annual Report, 1939. (Mimeographed.)
Annual Report, 1940. (Mimeographed.)
Annual Report, 1941. (Mimeographed.) Out of
print.
Unemployment Compensation Law as amended
(1945.)
Employment Security News (mimeographed
—
weekly), started in 1936 by the North
Carolina Employment Service. Now issued
jointly by the Unemployment Compensation
Commission of North Carolina and United
States Employment Service. Suspended Dec.
1944 for duration.
North Carolina Employment Security Informa-tion,
Volume I, Numbers 1-12, 1941. (Dis-continued.)
U. C. C. Quarterly, Volume 1, Nos. 1-4 (1942-3)
Volume 2, Nos. 1-3 (1944)
Volume 3, No. 1 (1945)
Rules and Regulations.
Index and Digest of Commission Decisions 1-600.
CIRCULARS AND FOLDERS:
Benefit Payments for Partial Unemployment.
Employer Experience Rating in North Carolina.
Information for Workers about Unemployment
Compensation.
POSTERS:
Employer's Certificate of Coverage and Notice to
Workers.
Notice to Workers—Partial Benefits.
Are You Protected?
STATISTICAL REPORTS:
(Current series, mimeographed.)
Business Activity in North Carolina as Reflected
by Movements in Selected Indicators
—
Current Trends (monthly).
Unemployment Compensation Trends (monthly).
This report began with June 1943, and
succeeds three of the former monthly series
reports
:
(1) Summary of Claims Activity
(2) Summary of Local Office Operations
(3) Number and Amount of Benefit Pay-ments,
by Office (monthly).
Weekly Summary of Initial and Continued Claims
Taken and Benefit Checks Distributed by
Area and Office.
(Special Studies, 1944-1945)
Analysis of Benefit Formulas—1936-1939-1940—
Alternates
Analysis of Claims with Benefit Years Ending in
1944.
Covered Employment and Wages 1943, by County
and Industry (Confidential)
Effect of Demobilization on N. C. Employment and
Unemployment Compensation
Experience Rating in N. C, 1945
Geographic Distribution of the N. C. Labor Force
Industrial Distribution of the N. C. Labor Force
Industrial Trends in N. C, 1940-1942
Post-War Unemployment.
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THE U.C.C. QUARTERLY
VOLUME 3, NO. 2
r
ggfr"uNiv53>v SPRING, 1945
TrTTTTS-S- 5-
—
AUG 23 1945
Power Dam, for Waterville. wmvmm from
BtOfW " LilSiTY LIBRARY
PUBLISHED BY
UNEMPLOYMENT COMPENSATION COMMISSION OF NORTH CAROLINA
PAGE 34 THE U. C. C. QUARTERLY SPRING, 1945
The U. C. C. Quarterly
Volume 3 ; No. 2 Spring, 1945
Issued four times a year at Raleigh, N. C, by the
unemployment compensation commission of
North Carolina
Commissioners: Judge C. E. Cowan, Morganton; C. A. Fink,
Spencer; R. Dave Hall, Belmont; R. Grady Rankin, Char-lotte;
Dr. Harry D. "Wolf, Chapel Hill.
State Advisory Council: Capus Waynick, High Point, Chair-man;
Willard Dowell, Raleigh; Marion W. Heiss, Greens-boro;
H. L. Kiser, Charlotte; Dr. Thurman D. Kitchin, Wake
Forest; Robert F. Phillips, Asheville; Mrs. R. J. Reynolds,,
Winston-Salem; Mrs. Emil Rosenthal, Goldsboro; W. Cedric
Stallings, Charlotte.
A. L. FLETCHER Chairman
R. FULLER MARTIN Director
MRS. FRANCES T. HILL Editor
Regular Contributions in each issue from the
united states employment service for
North Carolina
Agency of the War Manpower Commission
Cover illustrations represent typical North Carolina
industries under the unemployment compensation
program.
Cover for Spring 19^5—Local Power Dam. Illustration from
N. C. Department of Conservation and Development shows
Pigeon River Dam, connected with Waterville Generating
Station. The development of electric power throughout the
state is a prime factor contributing to the growth of industry
and to the general welfare of North Carolina. In this issue
of the Quarterly are three articles summarizing various
aspects of electrical energy production and distribution in
the state.
Sent free and upon request to responsible individuals, agencies,
organizations and lib?-aries. Address: U. C. C. Informational
Service, Raleigh, N. C.
CONTENTS
Curtis Goes to Washington 34
A Challenge to North Carolina Industry, By S.
F. Campbell 35
Average Annual Salary-Wage Rates, By S. H.
Hobbs, Jr. 37
Our Power Industry Develops, By Edgar Womble 39
Electrifying Agriculture, By David S. Weaver 42
T. V. A. in North Carolina, By Maurice Henle 46
Fontana, By Bill Sharpe 48
Can N. C. Industry Absorb the Labor Surplus?
By S. F. Campbell 49
U. C. C. Operations 52
Unemployed Veterans—Six Months Report
Commissioners Hear Strike Cases
U. C. C. Fund
—
$100,000,000
Seasonal Workers May Lose Benefit Rights
Small Businesses Helped Most by Experience Rating
North Carolina To Have Display of Its War Pro-ducts,
By M. R. Dunnagan 54
CURTIS GOES TO WASHINGTON
FROM THE BUREAU CHIEF:
Mr. William R. Curtis, formerly of the North Caro-lina
agency, has been appointed chief of the Admin-istrative
Standards Division of the Bureau of
Employment Security. You are all acquainted with
Bill Curtis who spent seven and one-half years with
the North Carolina agency, serving two years as
Director, and two years as Chairman of the Com-mission.
He was a member of the 1944-45 Executive
Committee of the Interstate Conference of Employ-ment
Security Agencies. —By EWAN CLAGUE.
FROM THE COMMISSION
:
Whereas, Dr. William R. Curtis has tendered
his resignation as Director of the Unemployment
Compensation Division to become Chief of the Ad-ministrative
Standards Division of the Bureau of
Employment Security, the North Carolina Unem-ployment
Compensation Commission, in regretfully
accepting his resignation, wishes to express its ap-preciation
for his outstanding services, and to wish
him continued success in his new undertaking.
Dr. Curtis came to the North Carolina Unemploy-ment
Compensation Commission in 1937 as Director
of Research. He was made Director of the Unem-ployment
Compensation Division in 1941, which
position he held until the date of his resignation. He
served as Acting Chairman of the Commission from
May 1942 until July 1, 1944, while Chairman Colonel
A. L. Fletcher was in active military service, except
for a period of some five months while he himself
served with the United States Navy.
To Dr. Curtis must go a large share of the credit
for the continued progress of unemployment com-pensation,
and for the, building of a sound adminis-trative
basis for the program in this State. A
measure of the value of his services is his selection
to the high position to which he now goes. His de-parture
means a loss to the State of North Carolina,
Spring, 1945 THE U. C. C. QUARTERLY PAGE 35
and to the North Carolina Unemployment Compen-sation
Commission which will be keenly felt.
While deeply cognizant of this loss, the North
Carolina Unemployment Compensation Commission
takes pride in the honor which has come to Dr.
Curtis ; and it is both appreciative of the opportunity
which his new position offers to make genuine and
lasting contributions to the cause of unemployment
compensation, and confident of his ability to make
such contributions.
By Harry D. Wolf, for the Commissioners.
FROM THE UCC PERSONNEL
:
"All of us have a feeling, I'm sure, that evil days
are upon us, what with the unholy rumor that an
attempt may be made to make a political football
of our agency, and with the stark reality that in your
resignation we are actually losing the generator to
our power plant. Under such grievous circumstances
we find it in our hearts to try to show in some small
measure our appreciation for your interest in us indi-vidually
and collectively through these years of
happy association. The committee appointed to han-dle
the matter wishes to present to you this small
kit-bag to pack up your troubles in, with the hope
that, if used for that purpose it may prove all too
spacious. I'm sure I voice the sentiment of every
one in saying that you will carry with you the love,
the loyalty and best wishes of every one of us. Our
only consolation will be that, whatever may happen
to the program, we shall feel assured of a friend in
court in the Bureau, and shall look forward to a
breaking down of any possible barriers that might
prevent the most wholesome relations with the fed-eral
administration. If the worst should come and
the program should be completely federalized, we
shall hope to find again a sheltered spot under your
wing—and this does not imply that every one in
Washington has wings."
—By S. F. Campbell, for the UCC.
COL. FLETCHER CHOSEN
CONFERENCE OFFICIAL
Following the resignation of Dr. W. R. Curtis from
the Interstate Conference of Employment Security
Agencies, S. C. Cromwell of Maryland, President of
the Conference, polled the states comprising Region
IV—Maryland, Virginia, West Virginia, the District
of Columbia and North Carolina. Their votes elected
Col. A. L. Fletcher, Chairman of the Unemployment
Compensation of North Carolina, to the post of Vice
President for Region IV. Col. Fletcher has already
been an active participant in the work of the Con-ference,
serving as a member of its legislative com-mittee.
R. FULLER MARTIN SUCCEEDS
CURTIS AS DIRECTOR
UCC personnel heartily endorsed the Commission's
choice of R. F. Martin, since 1938 supervisor of the
Business Management Department, to succeed Dr.
W. R. Curtis as Director. Mr. Martin's duties will
not be strange since he served in that capacity from
May, 1942, through June, 1944, while Dr. Curtis
acted as Chairman during Col. Fletcher's leave.
A Challenge To North Carolina Industry
By Silas f. Campbell, Chief, bureau of research and Statistics
With the possible equalization of freight rates
between North and South and East and West, the
years immediately ahead offer the industrial leaders
of North Carolina a challenge and an opportunity
they can ill afford to ignore.
In a nation that leads the world in industrial
progress, no other state can face the future with
greater assurance and optimism than North Caro-lina.
One outstanding reason is that the state's indus-tries
are concentrated in the production of consumer
goods—the necessities of life—food, clothing and
shelter; products the purchase of which is manda-tory.
For this reason, employment, during both
periods of depression and prosperity according to
official records has remained relatively 20 percent
higher than the national level during the past dozen
years.
North Carolina manufacture is not subject to the
hazards that continually threaten those states which
concentrate on the manufacture of durable goods,
the replacement of which is largely optional, and the
purchase of which is curtailed, is not suspended
altogether, during periods of financial stringency.
Moreover, its industries, of which approximately
300 different types are currently active and covered
under the Unemployment Compensation Law, are
widely distributed geographically. This has a con-siderable
advantage over the concentration of manu-facture
in a few highly industrialized towns ; for the
effect of such fluctuations as may occur either up or
down is spread over a large area with the result that
any unfavorable impact can be most easily absorbed
with a minimum shock. On the other hand, the
benefit of any upswing in production likewise reaches
the maximum number and is felt in all parts of the
state. Little wonder the late President Roosevelt
referred to North Carolina as one of the best balanc-ed
states in the country.
While such conditions tend to assure a high degree
of industrial stability, they also present a handicap
which a careful study of the state's economy should
seek to overcome. This handicap lies in the fact that
many of its important manufactures are of a low
grade ; that is, their values are not increased through
the process of manufacture in the same proportion
as the manufactured products of other states. This
of necessity results in low wage levels.
We have been inclined to berate the employers of
PAGE 36 THE U. C. C. QUARTERLY SPRING, 1945
the state for the fact that the average weekly wage
level in North Carolina manufacture is 38.9 percent
below the national average, ranging from 64.3 per-cent
below in the manufacture of stone, clay and
cement products, to 7.7 percent below in the manu-facture
of transportation equipment. These are 1943
figures, taken at a time when war production had
brought into the state much out-of-state highly skill-ed
labor for shipbuilding.
The fault lies not so much with the employer, who,
if he produces a low priced product, must employ
low-priced labor or sell at a loss, as it does with the
general policy of stopping short in the processes of
manufacture, instead of carrying them to the highest
possible point in values added to products by manu-facture.
For instance, in one of the most promising indus-tries
of the state, the manufacture of products from
soybeans, peanuts and cotton seed, the manufacturer
is satisfied to sell the oil in its crude state to be
shipped to other states for refining, where the value
is increased ten-fold and more.
The same applies generally to the production of
leather, chemicals, minerals, tobacco pipes, and even
to textiles. For, while North Carolina mills consume
more than 25 percent of the nation's cotton used
in manufacture of textiles, and exceeds the next
highest state (Georgia) by more than half a million
bales annually, our neighboring state of South Caro-lina
has more looms and a greater production of the
finished fabric than North Carolina mills, much of
whose product is market yarns.
A study of industrial production in the United
States, based on the Census of Manufacturers for
1939 disclosed that the average value added to North
Carolina products in the process of manufacture was
58.5 percent of the total value of the material used
in manufactured products, while the average for the
nation was 65.9 percent. This is a difference of only
12.6 percent, but when it is considered that the value
of North Carolina material used in manufactured
prolucts in 1939 was $747,084,000\ it will be seen
that this loss amounted to more than $94 millions.
Recent disclosures of the U. S. Bureau of Mines
concerning the newly discovered mineral wealth of
North Carolina read like an enlarged version of the
story "Acres of Diamonds". This at a time when
the Bureau of Mines is emphasizing the fact that
the depletion of deposits of many of our important
minerals such as tungsten and black mica has reach-ed
a critical point. It only remains for us to scratch
the surface to uncover this immense mineral resource —minerals as valuable as gold, and more important
as a contribution to industrial development.
Now that we are in the process of being freed from
the curse of rate discrimination, and have come into
a fuller knowledge of the extent of our natural re-sources,
it must be patent to every one that we stand
on the threshold of an era of industrial progress that
1. U. S. Census figure, which included only firms with a
production of $5,000 or more. Based on wages reported
to U.C.C. for 1939, compared to wages reported by the
Census, value of material used in North Carolina in
1939, and the amount used for computing the loss, was
$1.3 billion.
should put the state far in the forefront among all
states of the nation.
At present the three basic industries of North
Carolina, textiles, furniture and tobacco, account for
approximately 50 percent of all non-agricultural em-ployment
in the state. If to these basic industries
be added mining, food and chemical manufacture,
under an intensive program such as our resources
warrant, it should be possible to increase total em-ployment
through these channels alone by at least
50,000 workers. This would go far toward the full
utilization of the increased labor force we may expect
with the termination of the war, and should solve
in large measure our problem of post-war employ-ment.
It is estimated that back of the employment of
each worker engaged in manufacture there is a cap-ital
expenditure of $6,000. For surface mining the
ratio would probably be less. As a maximum, such
an increase in total employment and industrial pos-sibilities
would call for an expenditure of $30 mil-lions.
This is only a third more than 25 counties of
the state spent in 1944 for alcoholic beverages, to say
nothing of unrationed beer and fortified wines. Sure-ly,
the 100 counties of the state can do more for their
own manufactures than these 25 counties can afford
to do for the manufacturers of whiskey.
The possibilities for such development are almost
unlimited. Our textile plants import annually mil-lions
of pounds of starch, while at their very doors
there exists the opportunity to manufacture at much
less cost a superior grade of starch from off-grade
potatoes for which our farmers have no market. Such
an industry alone could provide employment for
thousands of workers and increase the state's in-come
by millions.
More than eleven hundred chemists have been at
work for several years developing new uses of, and
new methods of processing agricultural products for
use in industry. Some of the experiments which
have been developed to the point of commercial pos-sibilities
are: potatoes for starch; peanut hulls, and
corn stalks for cork material; corn and wheat for
anti-freeze, solvents, butadiene, and synthetic rub-ber
; peanut and cottonseed meal for protein glues
;
ground corncobs for sandblast material, vegetable
leaves for protein poultry food. Other North Caro-lina
products have been developed to produce peni-cillin,
industrial alcohol, smokeless powder, plastics,
essential drying oils and tanning materials.
Coming at a time when the world's needs were
never so great, the prospect presents an opportunity
and a challenge such as seldom comes to a state.
Taken with the fortune of our arms, the outlook
should be a cause for rejoicing in every household.
But more, it should be a signal as the war closes
behind us, for a pooling of our home-front courage
and money to the end that our state and its citizens
shall take their rightful place at the front in the
making of a new and better world.
North Carolina taxpayers in 1944 paid 26.5 per-cent
less county taxes than in 1928, according to a
survey by the publication We The People of Raleigh.
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 37
Average Annua! Salary-Wage Rates
BY PROF. S. H. HOBBS, JR., UNIVERSSTY OF NORTH CAROLINA
The tables which appear in connection with this
article give a very accurate line on wage levels in the
different parts of the United States.
In the first table the states are ranked according
to the average annual salary-wage per all workers
in each state engaged in manufacturing, mining, con-tract
construction, trade, transportation, communi-cation,
public utilities, finance, insurance, real estate
and service, covered by state unemployment compen-sation
laws. This means that while not all workers
are included in the table, the vast majority are in-cluded
and the states are comparable since the unem-ployment
compensation laws are rather uniformly
set up in the United States as far as the administra-tion
is concerned.
The states range from an average salary-wage of
$2,769 for all workers covered in Michigan to $1,282
for all workers covered in South Carolina. The aver-age
salary-wage for all workers in the United States
in 1943 was $2,135. Of particular interest to us here
in North Carolina is that the average salary-wage of
the hundreds of thousands of employees covered by
our state unemployment compensation law was
$1,376 for the year 1943, and North Carolina ranked
forty-fifth among the states of the Union. Our aver-age
salary-wage was only $94 above that of the low-est
in the United States, $1,282 in our sister state
South Carolina. It is also interesting to know that
while the average income for all workers in the
AVERAGE ANNUAL SALARY-WAGE,
ALL WORKERS, 1943
For all workers engaged in Manufacturing, Mining, Con-tract,
Construction, Trade, Transportation, Communication,
and Public Utilities; Finance, Insurance, and Real Estate;
and Service, covered by state Unemployment Compensation
Laws. Based on data released by the U. S. Department of
Commerce in Survey of Current Business, August, 1944.
U. S. average salary-wage for all workers in 1943 was
$2,135. Average for 1939 was $1,361.
N. C. average wage-salary in 19 43 was $1,37 6, and our
rank 45th among the states.
Avrg. All Workers
Rank State 1939 1943
1 Michigan 31,575 J52,769
2 California 1,581 2,515
3 Connecticut 1,426 2,495
4 Nevada 1,397 2,492
5 Oregon 1,498 2,429
6 New Jersey 1,431 2,394
7 Ohio 1,452 2,372
8 Washington 1,402 2,355
9 Indiana......; 1,375 2,272
10 New York 1,588 2,248
11 Delaware 1,405 2,228
12 Illinois 1,522 2,228
13 Marvland 1,236 2,174
14 Wisconsin 1,425 2,158
15 Utah 1,244 2,079
16 Kansas 1,176 2,073
17 Maine 1,054 2,068
18 Rhode Island.. 1,210 2,060
19 Massachusetts 1,378 2,058
20 Pennsylvania.. 1,309 2,030
21 West Virginia.. 1,302 2,030
22 Arizona 1,275 1,989
23 Oklahoma 1,288 1,944
24 Minnesota 1,263 1,922
25 Nebraska 1,205 1,875
Rank State
26 Missouri
27 Texas
28 Wyoming
29 Montana
30 Colorado
31 Vermont
32 Louisiana
33 Idaho..
34 Virginia
35 Kentucky
36 Iowa..
37 Florida
38 New Hamp-shire
39 Tennessee
40 Alabama
41 New Mexico..
42 So. Dakota..
43 No. Dakota..
44 Georgia
45 No. Carolina
46 Arkansas
47 Mississippi. ...
48 South
Carolina
ivrg. All
1939
1,301
1,197
1,218
1,322
1,289
1,159
1,069
1,123
1,063
1,107
1,196
959
1,078
1,018
917
1,117
1,158
1,135
918
893
831
817
Workers
1943
1,868
1,866
1,854
1,840
1,841
1.811
1,781
1,780
1,747
1,726
1,716
1,702
1,645
1,644
1,568
1,528
1,494
1,499
1,461
1,376
1,340
1,289
796 1,282
United States increased approximately $1,000 from
1939 to 1943, the increase in North Carolina was
slightly less than $500, or only one-half the increase
of all workers in the United States. The average
worker in North Carolina received $893 in 1939, and
North Carolina also ranked forty-fifth in the average
pay received by workers during that year.
The second table ranks the states according to the
average annual salary-wage of workers engaged in
manufacturing for the year 1943. This is the largest
single group of workers covered by unemployment
compensation laws. The states range from $3,102
average salary-wage in Nevada, to $1,281 in South
Carolina. The average for the United States was
$2,351.
In this table North Carolina ranks forty-fourth,
with an average salary-wage of $1,377 for all wage
and salary earners of employees connected with man-ufacturing
industries. The states below us were
New Mexico, Arkansas, Mississippi, and South Caro-lina.
The average salary-wage of employees engaged
in manufacturing in North Carolina was approxi-mately
$1,000 below the average for the United
States for the year 1943.
Again it is interesting to note that while the aver-age
salary-wage increase for the United States was
approximately $1,000 from 1939 to 1943, the increase
in North Carolina was a little over $500, or about
half the increase for the United States.
WAR AND NONWAR
This table also shows the wages of covered em-ployees
segregated by war and nonwar manufactur-ing
activities. War activities include such things
as chemical and allied products, rubber, iron and
steel, ordnance, certain types of transportation, elec-trical
machinery, automobiles and automobile equip-ment.
Nonwar refers to such things as food, tobacco
manufacturing, textile mills, wearing apparel, paper,
printing and publishing, petroleum, coal, leather,
lumber, furniture and some other minor industries.
The interesting part of this table is that workers
engaged in war industries are much more highly paid
than those engaged in nonwar industries. The war
industry workers averaged $2,745 for the United
States in 1943 while the nonwar workers averaged
$1,844. Also the wage increase from 1939 to 1943
was much greater for those engaged in war work
than it was for those engaged in nonwar work.
For North Carolina the average salary-wage of
workers engaged in manufacturing in connection
with war classification industries averaged $2,217
in 1943, while those engaged in nonwar manufactur-ing
averaged only $1,266.
However, only about 19 percent of the workers
covered in North Carolina were on war industry
payrolls, while the average for the United States was
a little more than 67 percent. Only six states in the
Union had smaller percents of their manufacturing
employees working in industries classed as war in-
PAGE 38 THE U. C. C. QUARTERLY SPRING, 1945
AVERAGE ANNUAL SALARY-WAGE,
MANUFACTURING, 1943
In the following table, based on Survey of Current Busi-ness,
U. S. Department of Commerce, the states are ranked
according to average salary-wage of all workers engaged in
manufacturing, covered by state unemployment compensa-tion
laws, for year 1943. Parallel columns show average
salary-wage for 1939. The table also shows average salary-wage
for workers engaged in war, and nonwar manufacture
for both 1943 and 1939.
Rank State
1 Nevada...
Total
1939 1943
War
1939 1943
2 Michigan.
$1
1
3 California 1
4 Washington 1
5 Oregon.... 1
6 Ohio....... 1
7 Connecticut 1
8 Delaware 1
9 New Jersey 1
10 Indiana
11 Illinois
12 Maryland
13 Wisconsin
14 New York...
15 Pennsylvania 1
16 Kansas 1
17 Minnesota 1
18 Maine
19 Massachusetts 1
20 Arizona 1
21 Montana 1
22 Texas.. 1
23 Rhode Island..
24 Oklahoma
25 Nebraska
26 West Virginia.
27 Colorado
28 Florida
29 Wyoming
30 Utah
31 Missouri
.. 1
.. 1
.. 1
.. 1
. 1
"
1
.. 1
.. 1
32 Vermont 1
33 Ic
34 Louisiana 1
35 Idaho 1
36 Kentucky 1
37 Virginia 1
38 South Dakota 1
39 New Hampshire 1
40 Alabama
41 Tennessee
,421
,678
,564
,441
,481
,573
,374
,291
,416
,449
,534
,283
,504
,416
,335
,339
,458
989
,321
,283
,562
,209
,170
,340
,327
,380
,384
862
,455
,266
,298
,148
,307
,001
,232
,187
,025
,267
,047
907
991
42 North Dakota 1,210
43 Georgia.
44 North Carolina.
45 New Mexico
46 Arkansas
47 Mississippi
48 South Carolina..
822
840
999
777
726
758
United States.. 1,359
,102 $1 586 $3 376 $1,403 $1
,045 1 775 3 191 1,376 2,
,754 1 734 2 925 1,479 2,
,743 1 667 3 041 1,403 2,
,707 1 815 3 132 1,454 2,
,660 1 694 2 850 1,379 2,
,646 1 460 2 798 1,220 2,
, 523 1 458 2 919 1,203 1,
,517 1 634 2 736 1,242 2,
,476 1 594 2 676 1,256 1,
,418 1 635 2 635 1,446 2,
,437 1 516 2 738 1,122 1,
,400 1 651 2 732 1,374 1,
,365 1 019 2 765 1,777 2,
,297 1 549 2 688 1,170 1,
,287 1 419 2 498 1,320 1,
,258 1 571 2 667 1,421 1,
,215 1 307 3 157 958 1,
,214 1 591 2 582 1,210 1,
,177 1 489 2 376 1,199 1,
,162 1 956 2 746 1,404 1,
,130 1 412 2 511 1,155 1,
,120 1 388 2 474 1,079 1,
,113 1 415 2 340 1,320 1,
,083 1 391 2 359 1,317 1,
,073 1 615 2 459 1,175 1,
,067 1 506 2 223 1,316 1,
,027 869 2 614 861 1
,
,023 1 222 1 885 1,457 2,
022 1 506 2 263 1,164 1,
,019 1 528 2 355 1,205 1,
,948 1 602 2 373 1,042 1,
,947 1 405 2 166 1,268 1,
,937 1 268 2 624 965 1
,
,902 1 302 2 577 1,231 1,
,865 1 462 2 322 1,086 1,
,782 1 428 2 544 893 1
,738 1 438 2 166 1,260 1,
,723 1 427 2 202 1,019 1,
,668 1 273 2 204 732 1,
,615 1 233 2 044 903 1
,595 1 378 2 026 1,202 1,
,484 1 113 2 271 784 1,
,377 1 151 2 217 826 1,
,343 947 1 399 1,005 1,
,329 945 1 874 764 1,
,296 961 2 041 699 1
,281 798 1 864 756 1,
,351 1 524 2 745 1,250 1
Nonwar
1939 1943
,869
,235
,244
,260
,192
,022
,079
,672
,075
,887
,066
,753
,869
,063
,722
,845
,860
,633
,851
,854
,873
,673
,813
,767
,847
,612
,811
,393
,027
,684
,679
,628
,739
,476
,887
,558
,326
,711
,649
,169
,290
,575
,213
,266
,336
,155
,076
,255
,804
dustries. This means that our workers are missing
the opportunity to cash in on the higher wages paid
in war activities, but it also means that industry in
North Carolina will not have to make a very large
readjustment back to normal after the war is over.
The war industry payroll in North Carolina in 1943
totaled 104 million dollars, while the nonwar manu-facturing
industries payroll totaled 444 million dol-lars.
For the United States the war industries pay-roll
was more than twice the nonwar industries
payroll. Manifestly we are participating in the war
industries only in a very minor way. The main ex-ception
to this is that North Carolina has been
selected as a major military training locale. This is
shown by the fact that 18.5 percent of all salaries and
wages received in North Carolina in 1943 came from
the government while the national average was only
12.5 percent. This is due to the excessive number
of military personnel in North Carolina.
OTHER INDUSTRIES
North Carolina is not one of the leading mining
states yet several thousand people make their living
from mining operations. The average salary-wage
of mining operatives in North Carolina in 1943 was
$1,243, while the average for the United States was
$2,179. In no state is the annual salary wage per
mining employee lower than in North Carolina.
The annual salary-wage per employee of workers
employed in contract construction in 1943 was $1,710
in North Carolina, while the average for the United
States was $2,556. North Carolina ranks forty-fifth
in this category.
There are many thousands of people engaged in
trade covered by unemployment compensation laws.
The average salary-wage in North Carolina in 1943
was $1,239, while the average for the United States
was $1,678. North Carolina ranked forty-third
among the states in average salary-wage paid to this
group of workers.
The above data are very significant. One could do
a lot of moralizing on the basis of these facts. It is
never our purpose to do more than to present the
facts about life and livelihood in North Carolina. We
might say, however, that it is obvious that the
salary-wage schedule in North Carolina today is not
even average for the South. Bear in mind that these
data cover mainly private industry and they cover
a large majority of all employees. They are as rep-resentative
as any data can be. They do not cover
public employees, such as school teachers, welfare
workers, employees in the state institutions of high-er
education, institutions for the insane, and so on.
We know from data revealed from other sources that
the wage and salary scale of public employees is
pretty much on a par with the wage scale of the vast
employed public in this and other states. We might
say further that the level of living in any state is
quite definitely determined by the average annual
income of its population, especially the great mass
which gains its living by daily employment. The
things that one buys are not any cheaper in North
Carolina.
The data presented here are compiled from Survey
of Current Business, publication of the U. S. Depart-ment
of Commerce. They are official data and they
are also representative data, since workers covered
by unemployment compensation laws constitute the
vast majority of all workers in every state, and even
those not covered have wage schedules positively
correlated with the schedules of covered workers.
NEW "E" AWARD
The War and Navy Depatments announced in
March that the Acme Spinning Company, plants Nos.
1 and 2, in Belmont had won the Army-Navy "E"
award for excellence in the manufacture of war ma-terials.
The Acme Spinning Company is a welcome
addition to our Tarheel Honor Roll.
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 39
Our Power Industry Develops
by Edgar Womble, rate expert, north Carolina Utilities Comm?ss?on
In the production of electric energy and sales,
North Carolina stands first among the South Atlantic
states and in all the states that border the Atlantic
Ocean from Maine including Florida it is exceeded
only by Massachusetts, New York, New Jersey and
Pennsylvania, all great manufacturing states and
far greater in population.
The revenue of privately owned electric utilities
last year amounted to $49,687,511.72. The number
of customers served was 397,682, and the kilowatt
hours of current sold was 3,936,631,684.
In 1932, the amount of revenue was only $26,166,-
924.72; the current sold 1,722,873.64; the number of
customers 190,109.
For the past decade there has been a steady and
substantial yearly increase in the generation and
sales of current in North Carolina by privately owned
utilities, but last year the output by these companies
was 491,040,555 less than 1943 production. The
slump was due to the closing down of government
camps and other government agencies which had
sprung up under war conditions, private business
which depended on these governmental activities and
brown-outs imposed by governmental order. This
drop in production was but a natural and expected
thing. The production figures for 1944 are still high
and exceeded the production in 1940 by 1,229,765,552
kilowatt hours.
Below are the total figures for capacity of plants
and kilowatt hours of current generated by privately-owned
power companies, by years, 1932 to 1944, in-clusive.
CAPACITY OF PRIVATEL/Y-OWNED PLANTS
Hydro Steam Total
1944 461,051 616,585 1,077,636
1943 461,131 616,585 1,077,636
1942 461,021 585,052 1,046,073
1941 461,786 514,267 976,053
1940 395,851 431,085 826,936
1939 397,021 351,149 748,170
1938 398,078 351,149 729,227
1937 397,528 296,995 694,523
1936 393,043 289,555 682,598
1935 397,623 284,277 681,900
1934 424,534 365,996 790,530
1933 364,685 365,682 730,366
1932 364,664 365,776 730,440
MAJOR POWER COMPANY PLANTS
Below are names of, location and capacity of plants
of the major power companies
:
Carolina Power & Light Company—Hydro: Blew-itt,
Pee Dee, 24,600 ; Buckhorn, Corinth, 2,900 ; Car-bonton,
Carbonton, 1,000 ; Eury, Troy, 600 ; Lockville,
Moncure, 1,000; Lower, Vass, 450; Marshall, Mar-shall,
3,000; Tillery, Mt Gilead, 62,000; Waterville,
Waterville, 108,000 ; Weaver, Asheville, 2,500. Steam
:
Cape Fear near Moncure, 92,500 ; Elk Mountain, near
Asheville, 13,000.
Duke Power Company—Hydro: Bridgewater, Ca-tawba
River, 20,000; Rhodhiss, Catawba River, 25,-
500 ; Oxford, Catawba River, 36,000 ; Lookout Shoals,
Catawba River, 18,720; Mountain Island, Catawba
/
I -
t V
J '
;
&h v
v. ,/i
100,000 Volts On Its Way to Serve Raleigh
River, 60,000; Turner Shoals, Green River, 5,500;
Tuxedo, Green River, 5,000 ; Spencer Mountain, South
Fork River, 640; Idols, Yadkin River, 1,411; Plants
under 700 KVA, 352. Steam : Mt. Holly, Mt. Holly,
25,000; Eno, University, 30,000; Buck, Spencer,
190,000; Riverbend, Mt. Holly, 165,000; Cliffside,
80,000.
Tide Water Power Company—Steam : Wilmington,
11,500. Internal Combustion: Morehead City,
1,902; Beaufort, 632.
Virginia Electric & Power Company—Hydro:
Roanoke Rapids, 6,020. Steam, Rosemary Mfg. Com-pany,
2,500. Diesel: Kitty Hawk, 100.
CURRENT GENERATED KWH
Hydro Steam Total
1944 1,373,284,811 2,714,256,360 4,087,541,171
1943 1,554,811,751 3,023,769,975 4,578,581,726
1942 1,399,114,548 2,882,754,654 4,281,869,202
1941 1,069,044,155 3,045,914,883 4,114,959,038
1940 1,023,114,923 1,834,660,696 2,857,775,619
1939 1,122,410,196 1,118,441,773 2,240,851,969
1936 1,404,539,329 294,982,374 1,699,521,703
1938 1,148,294,734 755,250,661 1,903,545,395
1937 1,460,221,974 354,230,711 1,814,452,685
1935 1,337,929,070 113,498,745 1,451,427,815
1934 1,080,553,507 78,804,734 1,159,358,241
1933 1,018,442,413 190,329,548 1,208,771,961
1932 999,384,688 309,131,588 1,308,515,676
PAGE 40 THE U. C. C. QUARTERLY SPRING, 1945
In a study of these tables it is not only significant
to note the steady climb in plant capacity and in the
production of electric energy, but the steady out-stripping
of hydro development by steam.
SHIFT TO STEAM GENERATION
In 1932 only one-third as much current was pro-duced
by steam as that turned out by hydro plants.
In 1939, it will be noted that steam was closely on
the heels of hydro and in the following year 1940
overshot hydro by 811,545,773 Kwhrs, and three
years later, 1943, its production was virtually double
that of water power.
This shift from hydro to steam to the uninitiated
may appear strange when hydro development has
been accepted as the source to cheap power. In the
early days it was the source of cheap power and is
so today in some cases but collateral factors which
have come into the picture in so far as privately-owned
utilities are concerned, have made steam
plants preferable. Cheapness in hydro development
began to shrink when the acreage necessary to im-pound
the water was seized upon by taxing agencies
as a fertile field to swell the tax fund. Waste land,
swamp land and ground that wouldn't sprout peas
became about as valuable as land with a gold lode.
Then, too, improved methods in the steam process
considerably cut the cost per kilowatt hour. Further-more,
the Federal Government came into the hydro
picture, through interpretation and administration
as chief cook and bottle-washer and prospective own-er
of the plant.
This pound-of-flesh action is another illustration
of the policy of "killing the goose that lays the gold-en
egg." Electric utilities, in my opinion, should be
taxed as lightly as possible as power rates are a tre-mendous
factor in industrial progress.
ELECTRICITY THE YARDSTICK
Electric energy is the yardstick which gives the
measure of the economic standing of a community,
state or nation. This fact was recognized by Wash-ington
Duke and his sons, tobacco magnates, when
way back yonder they poured tobacco money into
hydro-power developments in North and South Caro-lina.
In the great streams of the Carolinas, the Dukes
envisioned cheap power which would create thriving
industry ; and their vision came true. Mr. Duke was
so obsessed with the idea of cheap power that he
overshot himself and had to be rescued by the courts
to get compensatory rates for his electric product.
Mr. Duke was not the first man nor the only man
or men to develop the hydro-power industry, but he
did a whale of a job when he put his hands to the
task. His hydro developments not only put the tex-tile
industry of the state in a commanding place but
it gave cheap power to other industries.
The founders of the Carolina Power and Light
Company among whom was the late Paul Tillery, and
today represented by President Louis Sutton, had
the same vision and followed closely the Duke devel-opment.
Today this company stands second only to
the Duke Power Company in North Carolina. To-gether
these two companies furnish 75 percent of the
electric power dispensed to the people of the state.
WAY OPEN TO LOWER RATES
The vision, determination and persistence of the
present Chairman of the North Carolina Utilities
Commission, Stanley Winborne, aided by the tech-nical
work of the writer, in 1932, was in a large way
responsible for the favorable electric rates which the
state enjoys and which has meant so much to the
business and industrial progress and to the home life
of North Carolina.
At that time, 1932, the Commisisoner, with the
assistance of the other Commissioners, succeeded
by conferences with the major power companies, in
putting across the policy of effecting reduced rates
in order to increase potential use of electric energy
instead of relying on the counter policy of letting
reduced rates follow increased usage of current. The
substantial reductions secured at these 1932 confer-ences
gave a great impetus to use of current and the
new policy was justified. In subsequent years other
reductions were made and today the residential rates
of the Carolina Power and Light Company and the
Duke Power Company, which as said before furnish
current to the bulk of the people of North Carolina,
are far below the national average and their idus-trial
rates are in line with the rates in the states
which have the lowest rates in the nation.
To give a concrete illustration of what has taken
place in sales, and reduced cost to the people, below
is given data of the Carolina Power and Light Com-pany
and the Duke Power Company and other major
power companies for years 1932 and 1944, showing
kilowatt hours sold, the average sale price and the
saving effected by the lowered cost of current.
1932 SALES
RESIDENTIAL: KW Ers. Sold Revenue Average
Carolina Power & Light Co... 24,363,932 $1,534,045.96 6.296?!
Duke Power Company
j 43,104,915 2,413,875.24 5.6
Southern Public Utilities _. i ' ' ' '
Durham Public Service Co... 5,250,844 303,220.77 5.774
Tide Water Power Co 4,130,853 324,465.01 7.854
Virginia Electric 2,527,800 127,529.76 5.045
COMMERCIAL:
Carolina Power & Light Co... 19,759,456 1,170,449.51 5.923
Duke Power Company i 28,736,610 1,479,819.09 5.15
Southern Public Utilities / '
'
Durham Public Service Co... 3,067,918 191,853.28 6.253
Tide Water Power Company 2,786,283 217,536.16 7.807
Virginia Electric 2,076,388 120,667.81 5.811
INDUSTRIAL:
Carolina Power & Light Co... 174,335,939 2,368,649.54 1.358
Duke Power Company 525,493,782 6,296,496.03 1.198
Southern Public Utilities 88,242,388 1,768,495.00 2.004
(613 ; 736, 170) (8,064,991.03) 1.3
Durham Public Service Co... 7,296,323 185,416.91 2.541
Tide Water Power Company 16,796,299 336,534.01 2.003
Virginia Electric... 35,725,795 418,154.31 1.17
1944 SALES
Carolina Power & Light Co.
1932
KWH Avg. Avg. Diff. Saving
Residential 107,472,913 2.732 6.296 3.564 $3,830,334.61
Rural 28,541,786 3,368 6,296 2.928 8,357,327.77
Commercial........ 139,064,871 1.820 5.923 4.103 5,705,831.65
Industrial 431,884,913 1.030 1.358 .328 1,416,582.51
11,788,481.54
Duke Power Company
Residential 243,061,933 2.967?! 5.6 2.633 6,399,820.69
Commercial 141,371,080 2.367 5.15 2.783 3,934,351.71
Industrial 1,710,335,631 .885 1.3 .415 7,097,892.86
17,432,065.26
Spring, 1945 THE U. C. C. QUARTERLY PAGE 41
Interior Views of N. C. Power Generating Plants
Tide Water Power Co.
KJVH Avg.
Residential 23,299,079 3.981
Rural 1,330,473 4.577
Commercial 29,908,409 3.413
Industrial 137,381,366 1.123
Virginia Electric & Power Company
Residential 15,404,031 3.251
Commercial 20,357,293 2.075
Industrial— 77,506,947 .982
1932
Avg. Dig.
7.854 3.873
7.854 3.277
7.807 4.394
2.003 .880
! 902,373.32
43,599.60
1,314,175.40
1,210,329.80
2 3,470,478.12
5.045 1.794 2 27,634.83
5.811 3.736 760,548.46
1.17 .188 145,713.06
2 933,896.35
RECAPITULATION:
Carolina Power & Light Co ...?11,788,481.54
Duke Power Company 17,432,065.26
Tide Water Power Company 3,470,478.12
Virginia Electric & Power Company 933,896.35
SAVINGS BY YEARS:
1933..
1934..
1935..
1936..
1937..
1938..
1939..
-2 2,031,952
2,159,464
4,187,212
6,607,135
10,060,912
11,758,913
17,612,476
1940..
1941..
1942..
1943..
1944..
Total.
233,624,921.27
2 21 682 955
25 602 835
28,971 841
34 547 609
33 624,921
2 198 848 223
TAXES HEAVY ITEM
The privately-owned utilities on their electric
operations last year paid in federal, state and local
taxes $13,289,862.41, which was 26.74 percent of the
gross revenue they received.
The great bulk of this tax was paid by the Caro-line
Power and Light Company and the Duke Power
Company. The taxes paid by them were: Carolina
Power and Light Company, $4,394,318.62; Duke
Power Company, $7,738,316.56.
MUNICIPAL OPERATIONS
Sixty municipalities operate their own electric sys-tem.
Their sales for 1944 amounted to $6,324,058.48.
They sold 210,348,820 kilowatt hours of current to
131,451 customers.
Thirteen of these municipalities own their own
generating plants and generated a total 121,333,318
kilowatt hours, 119,496,499 by steam or diesel, and
1,836,819 by hydro.
Rocky Mount was the largest generator of current.
Its output was 37,841,000. Next in point of output
were Wilson 18,628,253; and Greenville 18,380,673.
CUSTOMERS, SALES, REVENUE
Below are number of customers, kilowatt hours of
current sold and amount of current sold and amount
of revenue by eight of the larger towns:
Rocky Mount 6.643 29,912,573 2560,026.80
Fayetteville... 7.946 23,269,112 746,928.62
Greenville 5.796 15,150,524 357,126.64
High Point._ 9.065 14,387,060 450,536.81
Gastonia 4.642 12,310,183 318,490.64
Lexington 4.456 12,196,660 308,001.24
New Bern 4.486 11,359,702 387,992.74
Kinston 5.410 10,908,536 334,167.04
RURAL ELECTRIFICATION
Rural Electric Membership Corporations during
the year 1944 bought 46,826,262 kilowatt hours of
current from privately-owned power companies or
other sources and distributed it to its members. They
paid an average of 1.22 cents per kilowatt hour for
current purchased. There were in operation 27 of
these companies besides one Georgia company which
serves customers in Cherokee and Clay counties.
Three of these membership corporations have gen-erating
plants of their own, one of which generates
all the current that it sells. These plants are small
and the current generated is not great. At the be-ginning
of this year they had 12,036 miles of line in
operation serving 4, 457 customers.
It has not been necessary for these membership
corporations to build their own generating plants as
the major power companies of the state have whole-heartedly
cooperated with the membership corpora-tions
and Gwyn Price, the present commisisoner of
the North Carolina Rural Electrification Authority,
and his predecessor, Dudley Bagley. These commis-sioners
have acted with vision and have seen the
wisdom of teamwork with the privately-owned com-panies
in rural electrification.
In this development the records show that the
Carolina Power and Light Company and the Duke
Power Company have played a great role not only
in furnishing current for resale at reasonable prices
but in extending direct service to thousands of cus-tomers
in their respective territories.
An outstanding figure in rural electrification is D.
S. Weaver, of State College. His vision and studies
PAGE 42 THE U. C. C. QUARTERLY SPRING, 1945
were of great aid not only to the membership cor-porations
but to the privately-owned companies who
sensed obligation to rural dwellers in their areas.
When the war shall come to an end and material
shall become available for construction, rural electri-fication
will undoubtedly go forward by leaps and
bounds as rural areas everywhere now are thor-oughly
electric conscious and are clamoring for the
appliances which will take the drudgery out of the
home life, the barn and the farm, and put to work
"hands" that tire not and pour profit into the lap of
the farmer and his good wife.
This year, 1945, three more companies have been
formed, one of which is already in operation.
ELECTRIFYING AGRICULTURE
By Davsd S. Weaver, Professor of Agricultural Engineering, State College
The progress which was made in
rural electrification in North Carolina
in the decade after our right of way
was cleared through the establish-ment
by the General Assembly in
1934 of the North Carolina Rural
Electrification Authority, is truly
amazing. It has far exceeded expec-tations
and astonished even those of
us who originally saw the need and
surveyed the possibilities of carrying
electric power into the state's rural
areas. At present, more than a third
of North Carolina's farms have cen-tral
station electric service. This rep-resents
a tremendous advance since
1935 when only 3.2 percent of our
farms enjoyed that advantage.
The rate of this progress has been
halted only temporarily by the mate-rials
shortages of the war years. The
next decade holds the promise of con-tinued
expansion, possibly accelerated to show an
even steeper upward trend than the one on the ac-companying
chart. Furthermore, such expansion
can be started sooner than construction development
in other fields, for the organizational work has been
going forward in spite of interruption of actual elec-tric
line extensions. Many planned programs await
only the availability of wire and other essential
equipment. There are no reasons why eventually
practically every farm and rural community in North
Carolina should not have electric power with all its
conveniences.
The value of electrification to rural communities
and individual farm establishments, however, cannot
be measured adequately in terms of miles of lines or
of current consumed. The improvements in living
standards, in the productive capacity of the people,
in health, education and general welfare, must be
multiplied by almost every phase of human activity
you can think of.
HISTORY
Around the turn of the century, few except the
larger towns were served by plants for the econom-ical
production of current. Consequently, the cost of
current as a source of fuel, and in some cases even
for light, was all but prohibitive for the average per-son.
Rural electrification, the introduction of mod-
'-J&C& s^m s\ wewbiz.
ern equipment, and continued im-provement
in machinery and methods
have placed it within reach of prac-tically
all of North Carolina's 400
towns and villages of less than 2500
population as well as a large propor-tion
of its rural inhabitants. It is
generally recognized that the increase
in the use of electric current for light
and fuel has been tremendous and
probably as great relatively as the in-crease
for industrial use.
Prior to 1934, the demand for rural
electrification in North Carolina was
insignificant compared to the years
that followed. Statewide development
was precluded largely by the unor-ganized
and scattered demand for ru-ral
electric power. However, vision
was not lacking, and there were those
who became interested in rural elec-trification
from the standpoint of
satisfying both material and cultural wants—in de-veloping
leisure and generally higher standards of
living for farm families, aside from the purely pro-ductive
possibilities of electric power.
While J. C. B. Ehringhaus was a gubernatorial
candidate, he outlined in his speeches the many ad-vantages
and opportunities for development of rural
living in North Carolina, with the possibility of elec-tricity
for our farms. At about the same time, the
interest shown in rural electrification by the 28,000
farm families contacted in connection with a federal
housing survey of ten North Carolina counties spur-red
a further investigation, conducted by the Agri-cultural
Engineering Department of State College
in the three counties of Cleveland, Edgecombe and
Moore, of rural electrification possibilities. While
this investigation revealed the gigantic possibilities
inherent in an electrification program, it was not
complete enough for a definite program. But as a
result, of it, Governor Ehringhaus, consulting with
agricultural leaders, engineers and others, determin-ed
that a state-wide survey would be desirable and
appointed a committee of outstanding rural leaders
to draw up specific plans for such a 100-county sur-vey.
The committee met on May 31, 1934, and se-lected
me to direct the survey which was to determ-ine:
(1) the location of the existing distribution
lines serving rural customer; (2) the desire on the
Spring, 1945 THE U. C. C. QUARTERLY PAGE 43
part of the farm families for electric service; (3)
the location of areas where the construction of rural
lines would prove economically feasible. After some
delay the Emergency Relief Administration approv-ed
the project and provided approximately $32,000.
Following the introduction of our survey as a relief
project, national officials became interested and
many other states undertook similar surveys.
Through carefully planned publicity the idea of
rural electrification was carried to the people of the
state. This campaign to stimulate thought on the
subject was so successful that the original estimates
of the extent of the survey had to be repeatedly re-vised
upward. Almost overnight 135 separate com-munities
signified interest in the program and within
six months 1,035 localities were developing their
plans. Perhaps no other movement for the better-ment
of rural life in recent years so gripped the
imagination of people. Whole counties, having
despaired of ever obtaining electric service, awaken-ed
to the possibility of its attainment and the com-fort
which it provides.
With the funds available, we conducted our survey
over a 15-month period in which 58 engineers were
employed in gathering and compiling data by a farm-to-
farm canvass in interested communities. The re-sults
gave a complete picture of conditions through-out
the state mapped by counties, statements of
average costs per mile, calculated revenues and rates,
data on buildings and appliances to be wired and
used, and included the statement that:
"Although there will be fewer customers per mile on
rural lines than in the cities, there are a great many more
economical uses for electricity in the rural homes than in
the urban homes. If the farmer's income can be raised
sufficiently to permit him to afford the electric service and
he can be educated in its economical use, many of the poorer
lines will soon show sufficient revenue to make them pay-ing
propositions.''
This state-wide survey indicated definitely the
extent of the need for electrification of North Caro-lina
farms, and in 1935, the General Assembly,
sensing the quickening pulse of isolated and unserved
rural areas, created a new department to be known
as the North Carolina Rural Electrification Author-ity
with an appropriation of $10,000 annually:
"To secure electrical service for the rural districts of the
state where service is not now being rendered; to contact
the power companies and othr agencies for the supply of
electric energy, for and on behalf of the rural communities
that desire service; to have such rights and authority to
secure for such local communities assistance from any
agency of the Federal Government . . .. for the purpose of
promoting and encouraging the fullest possible use of elec-tric
energy in the state by making electric energy available
to said inhabitants of the state at the lowest cost consistent
with sound economy and prudent management."
In short, the activities of the state Authority were
to be promotional. The Authority has no money
with which to construct rural lines and is dependent
upon the cooperation of existing facilities to accom-plish
its purpose. Electric service to rural areas is
supplied by three sources: (1) public utilities; (2)
municipalities; and (3) cooperatives sponsored by
the Federal Rural Electrification Administration.
The latter agency was in its infancy at the time our
Authority was established and had not yet announc-ed
its policies and plans, but the North Carolina Act
had made provisions for accepting any federal assist-ance
which might be forthcoming.
The work of the Federal Rural Electrification Ad-ministration
and the North Carolina Rural Electrifi-cation
Authority has been much confused in the pub-lic
mind. Although they have the same purpose of
extending rural power lines to every possible section
of the country, and of securing lower rates with the
increased consumption which greater farm use
brings about, and the education of the rural people
in the use of electricoty, the Federal Administration
has no district or state offices, while the North Caro-lina
Authority has its office in Raleigh. A further
distinction is that the state Authority has no funds
except for maintenance ; whereas the Federal Admin-istration
has many millions at its disposal.
Under the leadership of Dudley Bagley, first chair-man
of the North Carolina Authority, a practical
plan was worked out for accomplishing its purposes.
This enlisted the cooperation of established agencies —including public utility companies, municipalities,
the State College Extension Service, and the State
NORTH CAROLINA
RURAL CUSTOMERS RECEIVING
CENTRAL STATION SERVICE
J
PAGE 44 THE U. C. C. QUARTERLY SPRING, 1945
Utilities Commission, under whose guidance power
rates in North Carolina have steadily dropped. From
the beginning of the program, the utility companies
have actively cooperated with the Authority. The
results of their efforts to date show that they have
added more new rural customers than all other
agencies combined. Approximately 60 towns own
their power distribution systems and a large propor-tion
of these have manifested their interest in the
surrounding territories by building rural power lines.
Getting off to a comparatively slow start, the Fed-eral
Rural Electrification Administration has in more
recent years speeded up its program in this state
through the formation of 30 rural electric coopera-tives*
From 1935 to the present, the story of rural elec-trification
in North Carolina is best told by statistics,
some of which are indicated in the chart. Statistics
themselves, however, do not reveal some of the tre-mendous
obstacles that were encountered. Among
these were the problems connected with construction
costs, customer density, development of satisfactory
rural rates, rights of way and the divisions of terri-tory
among competing agencies.
EDUCATION
A study of the uses to which those interviewed
thought they could put electricity revealed that most
people were thinking only in terms of lights for their
homes. The much more important use of electricity
to relieve farm drudgery and increase the quantity
and quality of agricultural products was at first little
appreciated. The fear of excessive costs and the
lack of understanding of the many ways in which
electricity could be applied to agriculture were very
evident. Thus, another great factor necessary for
the success of any agricultural program was clearly
pointed out, namely, the education of our rural peo-ple,
as well as the development of a practical plan
of financing.
The final success of the rural electrification pro-gram
probably depends as much upon the practical
use made of electricity on our farms and in our farm
homes as it does upon the actual extension of rural
distribution lines. Because of this, close contact has
been maintained between the Authority and the
Agricultural Extension Service of State College.
The assistance of the Extension Service has helped
immeasurably in educating rural people in the uses
to be made of electricity. In the early days meetings
were held throughout the counties, chiefly devoted
to supplying general information as to the steps nec-essary
to secure assistance in building lines. Some
of the early activity involved conducting schools, in
which the Extension Service attempted to impress
upon rural people the necessity for having a safe
and adequate wiring system installed in their homes.
When the rural electrification program was first
undertaken, the assistance of county agents, home
demonstration agents and vocational agriculture
*The editor wishes to comment on the fact that while as
non-profit organizations the electric membership corpora-tions
are not subject to the Unemployment Compensation
Law, almost half of them have voluntarily elected coverage
as subject employers in order to give their workers the pro-tection
of unemployment insurance.
teachers was enlisted. As the program developed,
the interest of these workers increased, and their
efforts have contributed materially, on the educa-tional
side, to the present status of the program in
North Carolina. The interest of specialists whose
work involved the application of electricity in its
practical use in their particular fields—such as dairy-ing,
poultry, and horticulture—has accounted for a
more widespread appreciation of the value of elec-tricity
for these phases of agricultural advancement.
As part of our promotional work, two bulletins
—
"Using Electricity on North Carolina Farms" (67,-
000 copies) and "Wiring and Lighting the Farm
Home"—together with numerous leafflets were dis-tributed
to the farm people of the state. Actual
demonstrational equipment was made and exhibited,
enabling people to observe in a practical way the
problems and benefits of rural electrification. Ex-treme
attention has been paid to the matter of safe
and adequate wiring, which is considered by most
observers as the "bottle-neck" in the rural electrifi-cation
program, since inadequate wiring will prevent
the use of sufficient appliances to make electricity a
real economical asset on many of our farms. In spite
of the thousands of farm people who undoubtedly
have been influenced to wire their buildings ade-quately,
it is impossible to reach all of the many new
users. Those that do not have the foresight fre-quently
awake to the fact that they made a mistake
in not securing a sufficient sized wire, a large enough
number of outlets, etc., to permit them to expand
their uses of electricity to the fullest extent in the
phases of home and farm work for which it is ideally
suited.
PROGRESS
At the beginning of our program in 1935, there
were 1,800 miles of rural lines serving 11,000 farm
customers. In 1944, there were some 30,000 miles
serving 97,590 farm customers. The estimated value
of rural distribution lines in 1935 was $3,600,000
which by 1944 had increased to $30,000,000. Our
1943 survey revealed that the average customer plan-ned
to use 437 kilowatt hours per year, but a study
of the electric bills of the same customers in 1943
showed that they were using 1,197 kilowatt hours
per year.
"While it is not possible to say definitely what part
of the increased production in agriculture is due to
electrification, it is interesting to note that in 1935,
North Carolina produced 18,000,000 chickens and
46,000,000 dozens of eggs, while in 1943 the produc-tion
was 38,000,000 chickens and 84,000,000 dozens
of eggs. Similarly dairy production rose in the state
from 148,000,000 gallons of milk in 1935 to 170,000,-
000 gallons in 1943. In Chatham county, for in-stance,
because of the differentiating features in
electrification the agricultural business has complete-ly
changed over from one-crop (cotton) farming to
a diversified program of dairying and poultry rais-ing.
Siler City now has a poultry-processing plant
with a capacity of 12,000 birds a daj^. When North
Carolina was called upon to furnish fluid milk for
army camps, the required conversion of barnyard
Spring, 1945 THE U. C. C. QUARTERLY PAGE 45
milk into grade A would have been impossible with-out
the help of electricity.
Switching to the rural home, it appears that in
1935 an estimated 29,000 radios, 16,000 water sys-tems,
and 2,000 refrigerators were in use; whereas
by 1940, these had increased to 149,000 radios, 22,500
water systems, and 38,000 refrigerators. We have
found that 50 percent of our North Carolina rural
customers install electrical refrigeration—a greater
saturation of this type of equipment than exists in
urban communities. Such figures suggest the tre-mendous
opportunity rural electrification offers
through income-producing uses and the improvement
of living standards.
You hear many farmers say they would never
again farm without electricity. They have discover-ed
that their actual cash income increases with its
use. It helps to improve the quality of farm products —as milk for instance—and enables them to produce
more with less personal effort. More cash permits the
addition of more material comforts, and the conser-vation
of human energy allows the individual time
for cultural development. Electrification does more.
It raises the property values of farms. It helps a
landowner to acquire and hold good tenants. Its ben-efits
multiply in every direction. There is the health
angle, where running water and bathrooms in the
home, safe sewage systems, septic tanks, and better
diet from cooking and water improvement, all make
for sounder bodies. And in education, better lighting
means better home work from the school children.
Changing policies regarding loans by the Federal
Administration and by the private utilities as far as
their extension programs were concerned brought in
as new, feasible territory many areas which were
originally considered beyond the help of existing
agencies.
One of the most notable features in the whole rural
electrification program, credit for which must be
divided among all the agencies participating, is the
fact that the average cost of building rural lines is
now around $380 per mile. This is a real contrast to
the figures prevailing before 1934, when the utilities
quoted costs of from $1,500 to $2,000 per mile. Some
power companies are now willing to accept less than
one-twelfth of the investment per mile per year in
revenue instead of requiring one-third to be returned
each year. This means that instead of demanding a
total gross revenue per mile from customers on that
mile of from $500 to $700 annually, they now accept
$72 per mile per year. By this means the number of
customers who could accept service has been increas-ed
due to the fact that their proportionate part of the
cost has been so much reduced.
One of the factors accounting for the lower cost
per mile in constructing rural lines, is the cooperation
which has been afforded by the manufacturers of
line materials. Transformers, wire insulators, poles,
cross arms and all other hardware in connection with
line construction was materially improved and the
cost reduced. Greater strength of wire has been
introduced to permit fewer poles per mile. Formerly
up to 48 poles were set up, the standard number now
is 14. The practice of using no cross arms and only
one insulator also substantially reduced costs. As
costs continue to be lowered and consumption grows
as a result, the practical possibility of reaching less
feasible areas is increased.
In using 100 kilowatt hours per month, the farm
customer now pays from $3.50 to $5.00 as compared
with a bill which would have been rendered him in
1932 at the rate of from $7.25 to $7.33.
History has been made in North Carolina in the
past decade. No other similar length of time has
seen such an improvement and such a desire for im-provement
on the part of our farm people.
THE FUTURE
While many more miles of line will be built, it is
obvious that one of the largest problems facing the
advancement of this program is that customers con-nected
make wider use of electricity in their daily
operations. Development in this direction follows
extended service, but there is a lag tendency. Among
all the improvements which may be made about a
farm, there is nothing to compare with the versatile
uses of electricity. A horse can plow land, but it
cannot operate a washing machine, a tractor can
drive an ensilage cutter, but it cannot brood chicks,
a windmill can pump water but it cannot cook a meal,
a gasoline engine can be used to grind feed but it
cannot light a home, and so by comparison, electric
current can do almost all things that other forms of
power can do, and do it better, more economically,
more safely and more quietly.
Increased use and reduced rates mean a continu-ously
widening field for the spread of rural electrifi-cation.
In other words, more and more people will
learn to use electricity for practical purposes in their
daily living as rates decrease and uses increase.
Electricity on the farm is no longer a luxury but
has become a necessity for efficient farm production
and management, and for better farm living. How-ever,
its fullest use is just beginning to be appreci-ated.
When asked the question what would be the
first electric service he would be willing to give up,
one Tarheel farmer recently said: "Well, I hadn't
thought about that before, but I guess it would be
our lights. We just couldn't do without our refrig-erator,
water pump and brooder."
North Carolina's farm population includes 46 per-cent
of the people living in the state—only one other
state has a larger rural population. Hence postwar
expansion of rural electrification will be of paramount
importance to the welfare not only of the rural dwell-ers,
but of the state as a whole. For electricity saves
the farmer time, labor and money. Its effective use
increases his real income through increased produc-tion
for home use and for commercial markets. It
makes possible the modernizing of rural community
facilities and services for better health, better educa-tion,
better recreation and the developmnt of new
rural industries.
In spite of the significant development in the rapid
expansion of electricity to our rural areas, only one-third
of our farms are now enjoying the benefits of
this source of power. The geographic distribution
of miles of lines indicates perhaps more clearly than
any other index the nature of the task which still
lies ahead. There is great variation among the coun-ties
of the state as to the number of miles of electric
PAGE 46 THE U. C. C. QUARTERLY SPRING, 1945
lines in operation. Some counties have scarcely any
lines, whereas others have several hundred miles of
rural electric power lines. Furthermore, the inade-quacy
of the distribution is indicated by a compari-son
of the number of miles of line with the number
of rural inhabitants per square mile.
An unelectrified farm survey is under way cover-ing
every county in the state for use in accomplishing
long time rural electrification objectives and as a
blueprint for postwar planning. These surveys and
maps are to be analyzed to delineate project areas,
establish the number of miles needed to complete
overall area coverage, and relate the effect of area
coverage and consumer density to financial problems
involved.
Based upon allotments already made and upon
applications now on file, it is estimated by the North
Carolina Rural Electrification Authority that during
the immediate post-war period as soon as materials
and labor are available, the municipalities, private
utilities and cooperatives plan to build approximately
20,000 miles of lines to serve about 75,000 users.
This will represent an investment of around $25,000,-
000 in line costs plus another $25,000,000 expected
to be spent by the users for house wiring, fixtures,
plumbing, etc.
Expected expansion of the use of electricity as
well as planned area coverage will require changes in
present systems and larger equipment. Consequent-ly
the accomplishment of the long time objective of
rural electrification—of bringing electric service at
reasonable cost to every farm and nonfarm dwelling
unit in North Carolina now without it and seeing
that it is put to us to afford farmers the maximum
benefits—poses a number of problems. These include
(1) completion and analysis of the unelectrified farm
survey, (2) redesigning systems due to anticipated
increased loads when equipment becomes available
and to obtaining greater area coverage, (3) investi-gating
as to the adequacy of power supply available,
(4) the question of costs, (5) expansion of agency
facilities, (6) office buildings and demonstration
rooms for the cooperatives, (7) purchase programs
for wiring and equipment.
In the midst of changing from a one or two cash
crop type of agriculture to a balanced combination
crop and livestock program, North Carolina is in a
very favorable position to take advantage of all new
developments in the use of electricity on the farm.
The two enterprises which lend themselves best to
mechanization through electrification are dairying
and poultry production. As indicated above, we have
already made tremendous strides in these two fields
and further progress is easily seen.
The production of fruits and vegetables, now in its
infancy in this state, can make use of electricity in
many important ways. New developments in sweet
potato curing and the production of flue-cured to-bacco
present fertile fields for electrical uses. The
sudden and widespread interest in barn-type hay
driers presents possibilities of untold extent. With
less than 20 freezer locker plants in the state and
the indicated interest of practically every community
in refrigeration, a great field is developing for elec-tric
service.
North Carolina stands sixth in the list of states
in the estimated number of potential consumers, and
likewise sixth in the estimate of postwar expendi-tures
on a complete rural electrification program for
the state which would require the enormous amount
of $125,699,000.
Can our 1,656,000 rural people living on 278,276
farms justify an expenditure of $125 millions for
rural electrification in the post-war period? Those
of us who have worked, planned, schemed—yes
—
and prayed for the many fine things that electricity
can bring to our farms and our farm homes believe
they can.
T. V. A. IN NORTH CAROLINA
BY MAURICE HENLE, INFORMATION CHIEF, TVA
Four of the 21 dams of the TVA multiple-purpose
power, navigation, and flood control system are in
North Carolina.
The greatest of these is Fontana Dam, towering
480 feet high in the gorge of the Little Tennessee
River, where two 67,500 kilowatt generating units
recently began adding to the wartime supply of elec-tric
power. The other dams are Hiwassee, Appa-lachia,
and Chatuge, all on the Hiwassee River in
North Carolina.
Three of the dams—Fontana, Appalachia, and
Chatuge—were authorized and constructed initially
for the purpose of providing electric power for na-tional
defense and war, but they fit into the broad
regional program of the TVA for the development
and wise use of natural resources in peacetime.
The dams are the most spectacular, but by no
means the only, evidences of the TVA program in
North Carolina. TVA concentrated phosphatic fer-tilizers
are being used on nearly 5,600 test-demon-stration
farms under the direction of the State Ex-tension
Service. Minerals researches have been
carried on in cooperation with state agencies, includ-ing
work on North Carolina kaolins, vermiculite,
olivine and mica. New and improved farm machin-ery,
developed by TVA independently or in coopera-tion
with Land-Grant Colleges, are in use on North
Carolina farms, and a North Carolina firm is manu-facturing
commercially a TVA-developed small
threshing machine. More than 11,600 acres of erod-ing
land has been planted with 13,500,000 seedlings
provided by TVA forest nurseries.
The first dam to be built by the TVA in North
Carolina was Hiwassee, which was placed in opera-tion
in 1940. This structure, 307 feet high, created
a reservoir 22 miles long with about 365,000 acre-feet
of regulated storage for control of the Hiwassee
River. In 1941, two additional dams were authorized
on the Hiwassee River—Appalachia, 10 miles below
Hiwassee Dam, and Chatuge, a storage dam on the
Spring, 1945 THE U. C. C. QUARTERLY PAGE 47
stream above. Chatuge Dam, with no power installa-tion,
was placed in operation in February, 1942,
while Appalachia Dam was closed in February 1943,
and power generation at the powerhouse 12 mlies
downstream was commenced in September 1943.
Water is carried from Appalachia reservoir to the
powerhouse through a tunnel eight miles long.
Construction of Fontana Dam was commenced
January 1, 1942, and the two generating units were
placed in operation early in 1945, only a little over
three years after start of construction.
Fontana Dam is the fourth highest dam in the
United States, being exceeded in this regard only by
Boulder, Grand Coulee, and Shasta, in the Far West.
About 2,800,000 cubic yards of concrete were re-quired
to build it. The Fontana reservoir, extending
29 miles upstream to Bryson City, North Carolina,
provides 1,127,000 acre-feet of useful controlled stor-age.
The dam and reservoir, authorized as a wartime
power project, is particularly valuable from a power
standpoint since water released through the turbines
at Fontana also helps produce electric energy at ten
additional dams and power plants on the Little Ten-nessee
and Tennessee rivers.
Besides the four dams which it has constructed in
North Carolina, the TVA directs the operation of
five dams owned by the Aluminum Company of
America, four of which are in North Carolina, so
that in all, 26 dams are operated virtually as a single
system. This integrated operation not only increases
power output, with the additional energy divided be-tween
TVA and the Company, but also strengthens
the flood control operations of the TVA.
At the present time, the TVA system is producing
more than 10 billion kwh a year, and about 75 per-cent
of the power is utilized by war industry.
Only a small amount of TVA power is distributed
in North Carolina, chiefly by the municipally-owned
system of Murphy, but, as TVA Chairman David E.
Lilienthal recently told civic clubs at Greensboro,
in an address there, "After the war an opportunity
will present itself for the factories and cities and
towns and farms of North Carolina to put a part of
this great pool of power to work for the ends of peace
and prosperity.
"But I ask you and the businessmen, the public
officials, the farmers and householders of North
Carolina and all other states to remember a basic
tenet of TVA—that TVA does not press its power
contracts upon anyone. If we did so—and we have
no intention of changing our policy in this regard
—
we could be justly criticized.
"The initiative, the decision to seek TVA elec-tricity
must come from the people, from their towns
and cities, their farm cooperatives and business en-terprises.
. . .
"Once, however, the decision to seek a greater use
of TVA power is made, independently, by the people
themselves, through their own spokesmen and repre-
This is Hiwassee Dam, the first to be built by TVA in
North Carolina. It was completed in 1940. The dam, 307
feet high, is a part of the TVA multiple-purpose system of
water control for navigation, flood control, and electric
power.
Chatuge Dam, on the Hiwassee River in North Carolina,
has no power installation, but water stored in its reservoirs
increases the power output of Hiwassee, Apalachia, and
other dams downstream. The dam was authorized by Con-gress
in July, 1941, and was completed in about seven
months.
Apalachia Dam, on the Hiwassee River in North Caro-lina,
was placed in operation in 1943 to help provide elec-tric
power for war. The water shown here rushing down
the spillway is now diverted through a tunnel eight mlies
long to the powerhouse downstream.
-
PAGE 48 THE U. C. C. QUARTERLY SPRING, 1945
Here is a view of one of the nearly 5,600 test-demonstra-tion
farms using TVA concentrated phosphate fertilizers in
North Carolina. The test-demonstrations, under the aus-pices
of the State Extension Service, are designed to show
by practical experience the value of soil minerals in promot-ing
soil conservation and increased farm prosperity.
sentatives, then you can rest assured that the TVA
in the future as it has in the past, will cooperate to
the fullest in translating your decisions into accom-plished
fact.
"The initiative and decision are yours, not ours.
But from that point on, whether the subject is min-eral
development, forestry, recreation, industrial de-velopment,
farm development, or electric power, all
the resources of the TVA's technical staff, its experi-ence,
and most important of all, its desires to further
the interests of the people of this state, whose ser-vants
we are, are at your disposal."
The Murphy municipal system has been distribut-ing
TVA power since November 8, 1939. The intro-duction
of TVA rates for electricity brought initial
savings of about $19,500, including about $8,600 to
residential consumers.
Low rates brought about increased use of elec-tricity
as shown by the fact that in 1944 residential
consumers used an average of 1,996 1 vvh, or more
than 70 percent above the national r 'Jential aver-age
of 1,151 kwh per customer. During 1944, Murphy
residential consumers paid an average of 1.69 cents
per kwh, or less than half as much as the national
average of 3.51 cents per kwh for residential service.
At the same time, the municipal electric system
has been financially successful at low rates. In the
fiscal year ending June 30, 1944, gross revenues
amounted to about $45,900 and the net income, after
providing for all expenses applicable to the fiscal
year operations, amounted to $11,400.
Expenses of the system included $17,400 paid to
the TVA for wholesale electric power. The system
also provided for $2,200 in payments in lieu of taxes,
$3,500 for depreciation, and $2,400 interest on the
long term debt of the system.
FOINTANA
BY BILL SMARPE, STATE NEWS BUREAU
First reaction of rubberneckers who get a glimpse
of TVA's new Fontana dam and lake in western
North Carolina is "my gosh!" And because the
American people have a particular fondness for ex-clamatory
sights, state travel officials think that
some 1,500,000 people a year are going to my-gosh
at Fontana after the war. Such a crowd would make
it the most popular single attraction in the South.
The estimate is not based on wishful thinking. A
people preoccupied with an admiring of engineering
grandiosity already have proved by their attendance
that a big power dam is as much a tourist attraction
as anything else. In 1941, 1,300,000 people visited
TVA's first-born—Norris Dam in Tennessee, and in
eight years, over 11,000,000 people were counted as
gazing at TVA's various projects.
The prophecy that Fontana is so likely to outdraw
the others is based partly on our national passion for
superlatives. Fontana rises 480 feet above bedrock
and is the highest dam in eastern America and
fourth highest in the world. Its construction involv-ed
all kinds of engineering novelties which TVA
plans to explain to visitors via an information booth
at the dam.
But aside from that, the lake is a setting of natural
beauty, remote from disturbing civilization, and at
a refreshing altitude. Rimmed by peaks which
ascend 2,000 to 3,000 feet higher than the lake level,
the lake also borders the Great Smoky Mountains
National Park, which in 1941 itself drew 1,500,000
people. It does not appear unlikely that TVA's man-made
gadget will become, singularly enough, the
wilderness park's greatest drawing card.
Anticipating this flood of sightseers when the site
is thrown open to the public, TVA currently is trying
to interest some agency in what might become the
largest single resort unit in this country. There are
no facilities nearby and TVA would like to see the
construction village preserved to accommodate the
visitors.
The village contains hundreds of prefabricated cot-tages,
equipped with stoves, some furniture, plumb-ing
and wiring. It also has tennis courts, a hospital,
a school, paved streets, and all the minor accoutre-ments
of a modern town.
Nearby, and close to the dam, is also a construc-tion
camp containing dormitories, a large cafeteria,
community buildings, and recreational halls. The
dormitories will be dismantled as fire hazards, but
TVA is anxious for the rest of the camp to be utilized
as a recreational center supplementing the village.
The State of North Carolina has been asked to con-sider
the camp as a state park, aside from develop-ment
of the village itself.
Spring, 1945 THE U. C. C. QUARTERLY PAGE 49
It is at the camp site, which borders the lake shore
line, that TVA anticipates construction (by someone)
of a boat harbor, launching ramp, picnic areas and
perhaps a swimming pool. The lake itself, sharply
sloping to a depth of 400 feet, is considered unsuit-able
for swimming at the dam head. It suggests the
cafeteria could be converted into a recreational hall,
providing indoor games, dancing, etc.
TVA is making its own plans to show its handiwork
to its constituents. Access roads probably will be
built up the rugged slopes into which is anchored
the dam, and an observation platform will give cam-era
fans a thrilling vantage point for the millions
of snapshots which will inevitably be taken home.
From the top of the dam a novel cable tramway will
drop visitors down into the power house. There,
on a special visitors' ramp, sight seers can watch
the turbines at work and see other processes in
hydro-electric generation. The terrain around the
land is being scoured out now in a landscaping
project.
The lake alone is expected to provide sport enough
to hold visitors once they have been sated by the
dam. Hundreds of boats will be operated from con-venient
docks, and fishing, as in other TVA dams, is
expected to be attractive. Summer-long cottage
occupancy is visualized.
All but 1,500 of the 5,000 people who once lived in
Early in 1944, two generating units of 67,500 kw capac-ity
each commenced operation at Pontana Dam, 48 0-foot
concrete structure on the Little Tennessee. The reservoir
behind this dam has more than 1,100,000 acre-feet of useful
storage for use through 11 hydro-electric plants on the
Little Tennessee and Tennessee rivers. Head at this dam
ranges from a maximum of 43 3 feet to a minimum of 248
feet.
the village and camp have gone, and dismantling of
the facilities to be abandoned is going forward rap-idly.
Public visits now are restricted for security
and safety considerations.
Meantime, would you like to lease a nice little mod-ern
city?
Can Na C. Industry Absorb the Labor Surplus?1
By Silas f. Campbell, Chief, bureau of research and Statistics
It was asserted by Mr. Paul G. Hoffman, President
of the Studebaker Corporation, and Chairman of the
Committee for Economic Development, that pro-ductivity
must be increased by one-third over the
1940 level in order to provide jobs for the seven to
ten million workers who may be expected to become
unemployed upon the termination of the war.
Similar views have been expressed by others who
have gathered much data and have made exhaustive
studies of possible post-war trends. If this is a
sound promise it may be assumed that, since unem-ployment
in North Carolina has during the last de-cade
remained consistently about 20 percent below
the national level, it would only be necessary for
North Carolina industry to increase the 1940 level
of production by 26.67 percent, or 80.00 percent of
the 33.34 percent increase required of the nation.
Upon such an assumption it will be of interest to
compare the present position of North Carolina in-dustry
with the level of 1940, to determine what
types of activity are above the 1940 level, where and
what amount of loss could be sustained in present
production and still maintain the necessary increase."
COTTON TEXTILES
No doubt the most understandable comparison can
be made of the changes in actual volume. Cotton
consumption in 1943 was 35 percent above the 1940
level. Therefore, it could sustain a decline from the
1943 level of 6.18 percent and still exceed the 1940
level by 26.67 percent, and according to the views of
economists, modified by our own experience, this
would be sufficient to remove the danger of unem-ployment
in cotton textiles.
It may be just as well to ask whether cotton
textiles may be expected to maintain such a level in
the post-war period. First, of course, is the problem
of the extent to which synthetic fibers may replace
cotton. Generally speaking the same machinery
might be used but such a change would inevitably
involve a redistribution of labor in manufacture and
a serious reduction in agricultural labor. Un-doubtedly
cotton will be supplanted in some of its*
uses by synthetic fibers which have been proved
superior for certain purposes. However, cotton fibers
also have been the subject of laboratory experiments,
and it is claimed that it is now possible to add as
much as 50 percent to the tensile strength of cotton
fiber by coating it with a newly developed solution. (3)
Assuming that cotton holds its own at least during
the unsettled period of reconversion, it is possible to
estimate what pressure will be needed in this in-dustry
to achieve the necessary trend.
Indexes of cotton consumption in North Carolina
computed by the Bureau of Research and Statistics
of the Unemployment Compensation Commission, for
the period 1913 to 1939 indicated an annual incre-ment,
compound interest basis, of 2.80 percent over
a period of 27 years. However, annual increase
PAGE 50 THE U. C. C. QUARTERLY SPRING, 1945
since 1930 was much greater than for the 17 years
which preceded.
The average annual increase from 1930 to 1940
was 6.25 percent. Since this period bridged a com-plete
business cycle, including an unprecedented de-pression,
there is little reason to assume that had the
war not intervened this rate of increase would not
have been maintained. On this premise the 1943
level would have been 18.75 percent above 1940 with-out
the stimulus of war production. Since the 1943
consumption was actually 35.00 percent above 1940,
it appears that war contracts may have bolstered
normal production only by the difference between
18.75 percent and 35.00 percent or by 16.25 percent.
It is clear, therefore, that in order to maintain
production at 26.67 percent above the 1940 level, a
new demand must be found which is beyond what
would have existed under normal conditions in order
to prevent a decline from the 1943 level of more than
6.18 percent. If the required level cannot be main-tained
with the buoyance of war contracts to support
it, can it be done when that support is removed?
Not unless accumulated consumer demand exceeds
present war demands. This is a possibility, but once
the slack is taken up there is little reason to expect
that the upward slope of the demand curve will be
more pronounced than during the last decade unless
exportation of cotton goods is encouraged by some
means other than the government purchase of cotton
at full parity, while permitting the Commodity
Credit Corporation to export cotton at a price which
is less than that the North Carolina manufacturer
must pay in competition for raw material.
ELECTRICAL ENERGY PRODUCTION
Applying the same sort of analysis to the produc-tion
of electric current, it is found that a loss of
17.85 percent from the 1943 level could be sustained
and yet maintain a lead of 26.67 percent over 1940.
The production in 1943 was 54.18 percent above the
1940 level, and here again it is pertinent to observe
what production might have been in the absence of
war stimulus. The trend for the period 1920-1939
indicated an annual increase (compound interest
basis) of 9.30 percent, which means that under
normal conditions 1943 presumably would have been
27.90 percent above 1940.
On this basis the normal upward slope of the pro-duction
curve would be sufficient to absorb the ex-pected
post-war deficiency in employment with 1.23
percent to spare. With modern inventions, con-veniences
and increased adaptability of electricity to
commercial and industrial uses there is little reason
to doubt that the trend of the past 20 years pre-ceding
1940 will be maintained for some time, for
gains have been consistent and continuous.
CIGARETTE PRODUCTION
Data represent tax paid withdrawals, but over a
period of years they are safe as a measure of pro-duction.
A post-war decline of 11.20 percent would
be permissable on the basis of a 26.67 percent lead
over the 1940 level. The 1913-1939 trend indicated
an annual increase (compound interest basis) of 7.60
percent, which means that without the stimulus of
war demand 1943 production would have been 22.80
percent above 1940, and to maintain a level 26.67
percent above 1940 would leave an additional increase
of 3.87 percent to be supplied by some demand not
indicated by past experience.
CEMENT SHIPMENTS
This series is important only as it reflects activity
in building, street and road construction. Since
practically all highways and streets are in bad repair
as a result of neglect during the war, and private
building is under severe restrictions, there is little
doubt that for some time cement shipments will ex-ceed
the 1940 level by much more than 26.67 percent
especially since the index for that year on a basis of
long time trend was only 87.38. It would be neces-sary
to increase the 1943 level only 5.86 percent in
order to maintain the 26.67 percent lead over 1940.
CONSTRUCTION
In no other activity of the state is the normal
reservoir of labor as large as in construction. This is
an essential characteristic of job-to-job industries,
and while there is every reason to believe that the
tremendous back log of construction projects both
residential and industrial that will clamor for labor
as soon as restrictions are removed will carry the
construction industry to heights not known before
the war, it is doubtful whether it can or should re-sult
in full employment. The activity is highly
seasonal with fluctuations simultaneously in opposite
directions depending upon geographic and industrial
characteristics of the area.
In 1943 construction was only 13.11 percent above
the 1940 level. However, in this state war construc-tion
began in August, 1940 and while the index for
that year was only 13.20 percent above the long time
trend, it was 48.24 percent above the 1935-1939 aver-age,
and in 1943 was 70.63 percent above. It seems
probable, therefore, that with only such post-war
construction as can now be forseen, employment will
construction as can now be foreseen, employment will
tremendous road construction program of the twen-ties
resulted in a declining trend for the period 1924-
1939. An upward swing was just getting under way
when the movement was accelerated by war con-tracts,
and it may be expected that this upward
movement will continue by its own power under a
pre-war momentum.
F URNIT LIRE SHIPMENTS
Like many other activities the manufacture of
furniture has not been permitted to respond to the
normal demand, yet, based on the indexes of identical
reporting firms business in 1943 was 42.17 percent
above the 1940 level, and while data are not at hand
to determine what the trend over the past decade
has been in dollar volume, year to year indexes indi-cate
that continued growth and expansion may be
expected. The industry could suffer a decline of
10.92 percent from the 1943 level and still maintain
a 26.67 percent lead over 1940. No North Carolina
industry has made greater strides during the past
decade than furniture manufacture. Within 125
miles of High Point is the greatest concentration of
SPRING, 1945 THE U. C. C. QUARTERLY PAGE
furniture manufacturing in the world, including the
two largest furniture manufacturers in the world. (4)
With all of the recent developments in adhesives,
plastics and plywood the outlook for this industry is
altogether optimistic.
EMPLOYMENT AND PAYROLLS
The Unemployment Compensation Commission
covered 86.20 percent of the non-agricultural labor
force in 1940 exclusive of government and non-farm
domestic labor, and covered 89.50 percent in 1943. (5)
This indicates that covered employment in 1943 was
21.51 percent above the level of 1940. (6) This is short
of the required 26.67 percent lead over 1940 by 5.16
percent. The average of covered employment in
1940 was 474,872. An increase of 26.67 percent
would bring it to 601,473, but this would still leave
approximately 49,000 non-agricultural workers to be
provided for in addition to returned service men. (7)
One of the brightest hopes of increasing post-war
employment lies in the possibility of a greater in-dustrial
utilization of North Carolina farm crops.
Laboratories have found many new uses for farm
products in connection with war needs, such as the
manufacture of penicillin, rubber, industrial alcohol,
smokeless powder, plastics, industrial proteins, es-sential
drying oils, automobile tire cord, synthetic
fibers, tanning materials and many others. It is
stated that normally this country imports two-thirds
of its vegetable tanning materials, yet the plants
from which these materials are derived grow pro-fusely
in North Carolina.
Other North Carolina farm products in which lie
great industrial possibilities are : sweet potatoes for
the production of industrial starch ; peanut hulls and
cornstalks for the production of a cork material for
bottle capping ; corn and wheat for the production of
anti freeze, solvents, butadiene and synthetic rubber
;
peanut and cotton seed meal for the production of
protein glues ; ground corn-cobs for the production
of a sand-blast material, ground vegetable leaves for
the production of a protein poultry feed, and many
others. It is said that eleven hundred persons,
mostly trained chemists, are now at work on more
than 160 projects dealing with the industrial use of
agricultural products. (8) It is difficult to visualize
the possibilities of increased employment that may
grow out of these experiments.
It is generally recognized that industries now
operating under the Unemployment Compensation
law employ the bulk of the productive labor of the
state although they account for only 43.26 percent
of the entire labor force of the state. It seems
obvious, therefore, that even should productivity be
increased by 26.67 percent over the 1940 level, which
seems possible for some industries, the problem is
one that cannot be handled wholly within the present
industrial set-up. The foregoing projections point to
the conclusion that the problem will call for new
incentives, new industries, and new jobs to supple-ment
the best efforts present industry can put forth.
Moreover, the question of occupational fitness must
be considered. In the depression of the thirties
frequent surveys disclosed that less than 12 percent
of the unemployed were skilled workers, and the
future demands of industry may be expected to be
more exacting as to skill than in the past. However
willing industry may be it cannot utilize at a profit
those who will not fit themselves for profitable work.
AGRICULTURAL PRODUCTION
Approximately sixty percent of the land area of
North Carolina is devoted to agriculture in which
more than 400,000 of the gainful workers of the
state, or more than thirty percent of the entire labor
force, are employed.
The challenge for increased utilization of farm
products through manufacture, if accepted, will
furnish the incentive for increased agricultural pro-duction.
It is of interest, therefore, to determine
what the trend has been since World War I in the
money crops of the state, as a means of estimating
possible future development. From data furnished
by the North Carolina Department of Agriculture
trends have been calculated for eleven of the most
important crops from 1920 to 1944, except for pota-toes,
1929-1944, milk production, 1924-1943, and
poultry and egg production, 1925-1942.
For most crops the index covers the period im-mediately
following the last war and it is noteworthy
that for most of them there was a decided decline.
For some crops this downward trend was reversed
early in the thirties. For others it extended well up
to 1940.
There has been much comment about the tre-mendous
crops during these last war years. How-ever,
except for 1944, the figures for which are pre-liminary,
there appears to have been only a limited
upswing in production. Cotton production was
below the 25 year trend in both 1941 and 1943. Flue-cured
tobacco was under the trend of 2.82 percent
annual increase from 1940 to 1943, and Burley
Tobacco was below the trend in 1940, 1941 and 1942.
(1) Note: Any opinions expressed herein are those of the
author and do not necessarily reflect the view of the
Commission.
(2) For a more detailed analysis of material in this section,
see U. C. C. Bulletin, Current Business Trends, for Sep-tember,
1944.
(3) From "Revolutionary Changes Lie Ahead in Textiles,"
Manufacturers Record (Nov., 1944).
(4) "Southern Furniture Leads the Nation," Manufacturers
Record (Nov., 1944).
(5) See Unemployment Compensation Commission Biennial
Report 1942-1944.
(6) Employment in manufacture in North Carolina increased
between 1940 and the peak year of 1942 by 21.05 percent,
whereas, according to data of the Cleveland Trust Co., the
increase for the United States exceeded 50.00 percent.
(7) The total non-agricultural labor force of the state in
December, 1943 as reported by the United States Depart-ment
of Labor, exclusive of government and non-farm
domestic labor was 651,000.
(S) O. E. May, Chief of Agricultural and Industrial Chemistry,
United States Department of Agriculture, Manufacturers
Record (Nov., 1944).
DIGEST OF COMMISSION DECISIONS
Thanks to the painstaking work of Mr. J. V. Soden,
Senior Claims Examiner, the Commission now has
both a Digest and an Index of all its past decisions
regarding benefit payments. The Digest as compiled
covers decisions from No. 1 to No. 600, inclusive.
Supplements will be issued from time to time, as
further decisions of the Commission are made, in
order to keep the index and digest up-to-date.
PAGE 52 THE U. C. C. QUARTERLY SPRING, 1945
Ue C. C. Operations
UNEMPLOYED VETERANS—SIX
MONTH REPORT BY U. C. C.
Veterans of this war, temporarily unemployed,
received $243,831.00 in readjustment allowances un-der
the G. I. Bill of Rights during the first six-month
period of operations. In North Carolina, the G. I.
readjustment allowance payments of $20 a week are
made by the Unemployment Compensation Commis-sion
for the Veterans Administration.
The number of individual veterans receiving al-lowances
while waiting to find employment had in-creased
each month through January when an aver-age
of 791 veterans were paid each week. During
February, the average number of veterans receiving
the weekly payments dropped to 598.
The report for February, the last in the six-month
period, reflected a general decrease in veterans
claims. A total of 410 initial claims and 3,051 con-tinued
claims were processed during that month,
whereas in January veterans filed 510 initiial claims
and 3,827 continued claims.
It is estimated that altogether about 325,000
North Carolina service men and women will be elig-ible
for these allowances, since veterans who have
served 90 days or more in the armed forces and re-ceived
honorable discharges are entitled to receive
them, up to a maximum of 52 weeks, based upon
their length of military service. These allowances
provide financial aid during the interim of a veteran's
discharge from service and his employment in suit-able
work.
It is apparent that relatively few of the veterans
who have returned to the state to date—probably
around 25,000—have made applications for readjust-ment
allowances. Presumably many veterans who
are finding employment reasonably soon, or are re-turning
immediately to former jobs, prefer to con-serve
their readjustment allowance rights, to which
they are entitled for two years following discharge
from the service or two years after the termination
of the war, whichever is the later elate. There may
also be a good many unemployed veterans who do
not realize that readjustment allowances would be
available to them upon application to the Unemploy-ment
Compensation Commission.
Applications to the Commission for readjustment
allowances may be made at any of the offices of the
U. S. Employment Service located throughout the
state.
The Commission's six month report on the G. I.
allowance also listed expiration of entitlement for
two veterans, and a total of 63 claims filed by vet-erans
on an interstate basis. Interstate claims are
subsequent claims filed by veterans who have left
North Carolina, after having first received readjust-ment
allowances here. These claims are filed in other
states and forwarded to North Carolina for payment.
Under another phase of the G. I. program making
aid available for self-employed veterans whose trade,
business, profession or vocation yields them net earn-ings
of less than $100 in any month, the Commission
handled claims for a total of 203 veterans during the
first half year of operations. More than half of these
self-employed veterans made their first application
for allowance payments during the month of Feb-ruary.
Claims of this type are taken by the Commis-sion
through the local employment offices, but are
forwarded to the Veterans Administration for pay-ment.
A two-day meeting of' the Unemployment Compen-sation
Commissioners held in the office of the Chair-man,
Col. A. L, Fletcher who presided, came to an
end when the final case brought up for their decision
had been heard.
Twelve cases in all were presented, some involving
questions of the liability of employers and others
involving issues surrounding the payment of bene-fits
to claimants. In the latter group were three
labor dispute cases in which claims had been filed
by a total of 627 workers. Payment of benefits to
these workers was denied on the ground of their re-lation
to strikes which caused the unemployment.
Cases of claimants who appeal from such determina-tions
are heard by the Commission.
The cases heard at this session arose as the result
of strikes that occurred at the Proximity Cotton Mill
in Greensboro (December—425 claims filed), at the
Cocker Machine Co. of Gastonia (January—88 claims
filed), and the Jordan Spinning Co. of Cedar Falls
(January—114 claims filed).
The Unemployment Compensation Law carries a
provision that disqualifies a worker for benefit pay-ments
when it is found that his unemployment is due
to a stoppage of work which exists because of a labor
dispute, unless he can show that he is in no way
directly interested in the dispute and does not belong
to a grade or class of workers some of whom are par-ticipating
in or have an interest in the dispute. The
denial of unemployment insurance payments rests on
the application to the facts as brought out by the
evidence of interpretations of "labor dispute", "stop-page
of work", "participating in", "grade or class of
workers", etc. The Commissioners all agreed that
under our law, the labor dispute cases which have
been presented to them so far, have required them
to uphold the earlier determinations of the Commis-sion's
claims deputies denying benefits.
The balance in North Carolina's unemployment in-surance
fund rounded the figure of $100,000,000 at
the end of the first quarter. This trust fund of 100
millions represents payments which have been made
by over 10,000 North Carolina employers to assure
their workers of some income in place of loss of
wages during periods when they might be out of a
job through no fault of their own. The present bal-ance
is the difference between all sums received from
Spring, 1945 THE U. C. C. QUARTERLY PAGE 53
employers plus $6,117,882.00 in interest earned, and
all sums paid out to unemployed workers.
Under the terms of the Unemployment Compensa-tion
Law, all job insurance contributions from em-ployers
are transferred to the United States Treas-ury,
where they are held in interest-bearing securi-ties,
either of or guaranteed by the United States.
The present law provides that withdrawals from de-posits
made to the account of North Carolina may be
made only for the purpose of paying unemployment
benefits to workers released from covered employ-ment
in this state.
Increased war-time payrolls have resulted in larger
employer contributions to the fund. At the same
time many more workers have been having wage
credits reported to their unemployment insurance
accounts. It is expected that the number of individ-ual
workers for whom the Commission will have pro-cessed
wage records this year will total well over a
million.
More than 300,000 North Carolina men and women,
temporarily without jobs, have benefited by receiving
$25,000,000 from the unemployment compensation
program so far. April, 1945, concluded the eighth
year of accumulations to the unemployment trust
fund. Payments from this fund, in the form of ben-efit
checks to those entitled to receive insurance pay-ments
for unemployment, have amounted to $25,-
000,000, leaving a net balance available for the future
of $100,000,000.
At the present time, with industrial war expan-sions,
labor replacements of workers now in military
service, etc., the active insurance accounts which
the Commisison maintains for individual workers,
number well over a million. In other words, more
tnan a million North Carolinians, because of pay-ments
made by their employers to the Commission,
have a stake in the fund. This $100,000,000 reserve
balance represents their protection against post-war
unemployment.
At one time in the history of the Commission, as
many as 140,000 jobless workers were drawing ben-efit
checks, but the claim load has dwindled steadily
since this country embarked on war production. By
June of 1942, the number of unemployed had fallen
below any previous level, to an average of 7,000. The
number continued declining, with almost every
month signalling a new low in unemployment,
through December of last year.
In that month, the number of unemployed, as indi-cated
by an average of 400 weekly benefit checks
paid throughout the state, probably touched bottom.
About half of the local employment offices had been
reporting no new claims.
The total amount of benefit payments for the first
quarter of 1945 was $84,125.71. This was consider-ably
less than the $446,204.87 which was added to
the fund by the way of interest earned during the
same period.
In the opinion of employment security administra-tors,
in Washington and throughout the nation, the
adequacy of the unemployment compensation pro-gram
faces its first real test in the post-war period.
With its $100,000,000 reserve fund, and with its ma-jor
industries capable of re-conversion to peace-time
production within a comparatively short time, judg-ing
by the speed with which these industries changed
over to meet war production demands, North Caro-lina
is believed to be in a relatively favorable position.
SEASONAL WORKERS MAY
LOSE BENEFIT RIGHTS
—
The unemployment benefit rights for seasonal
workers may be limited in the future, following ac-tion
by the General Assembly in approving an
amendment of the U. C. Law which went into effect
March 14th. Under this amendment, out-of-season
unemployment, under specified conditions, in certain
industries, or their branches, may be made non-com-pensable.
The amended law would enable employers in sea-sonal
industries to establish with respect to all or
only part of their business a special period, or season,
of insured employment of less than a full calendar
year.
Workers who lose their jobs within this specified
period, may draw unemployment compensation for
jobless weeks while the season lasts; but in the off-season,
unemployed workers will not be entitled to
draw benefits chargeable to their seasonal employer.
It is expected that employers engaged in such en-terprises
as tobacco processing and the resort hotel
business may wish to take advantage of the amended
provision. By doing so their reserve accounts in the
Commission's trust fund would be relieved of charges
due to unemployment of their former workers during
the industries' off-season.
The new provision removes the requirement
formerly in the law that an offer of work from season
to season will have to be made. It stipulates that
an employer who wishes to have his business, or a
part of it, declared seasonal must apply to the Com-mission
to establish such a season with respecf to
unemployment compensation.
The season must not be longer than 36 weeks. Reg-ulations
prescribe the manner in which application
for a seasonal classification of an employer should
be made, and define what such an application has to
show as to the amount and kind of employment so
that the Commission may determine when this is
seasonal within the meaning of the law.
The effect on workers will be to reduce the possi-bility
of drawing unemployment benefits during their
off-season and encourage them to find work of other
kinds during that period.
SMALL BUSINESSES HELPED
MOST BY EXPERIENCE RATING
That it is the small operator rather than the large
that gets unemployment protection for his employees
at the least cost is demonstrated by an analysis of
employer tax rates made by Silas F. Campbell, chief
of the Bureau of Statistics of the U.C.C. Mr. Camp-bell
concludes that since all employers who obtained a
minimum rate of .27 percent of payroll for 1945 had
an average payroll of $32,400 compared to an aver-age
for all employers of $78,800, that the small busN
PAGE 54 THE U. C. C. QUARTERLY SPRING, 1945
ness operator and his employees would tend to bene-fit
most by an extension of unemployment compen-sation-
coverage to employers of fewer than eight
workers.
The rate analysis shows that operators with a re-duced
tax rate of .65 percent had payrolls averaging
$35,600. Those with a rate of 1.02 percent had an
average payroll of $53,900. Employers with a tax
rate of 1.39 percent have an average payroll of $105,-
400; those with a rate of 1.76 percent have payrolls
averaging $113,000 ; and those who pay at the rate of
2.13 percent have payrolls averaging $154,000. Thus
the smaller operators tend to benefit most from em-ployer
experience rating provisions in the Unemploy-ment
Compensation Law.
This pattern follows the experience in other states
where unemployment compensation coverage includes
the smaller businesses, in that they share in reduced
tax rates to a greater extent than do the larger
operators.
Of the 277 firms in the state which had a minimum
rate of .27, 196, or 70.7 percent, were either in the
merchandising or sawmilling business. Since the
size of payroll fairly reflects the volume of employ-ment,
it is apparent that an extension of coverage to
the small operator would result in the maximum
benefit to be derived from the unemployment com-pensation
program with a minimum burden upon the
main street and cross-roads operator, whose em-ployees
suffer just as much when they become unem-ployed
as those of the million dollar corporation.
North Carolina To Have Display Of Its War Products
BY M. R. DUNNAGAN
All articles produced and processed by hundreds
of employers in North Carolina during the war period
as contributions to the war effort are to be collected
and properly displayed as a permanent exhibit in the
state's Capital City for the information and pride of
present and future generations.
Assurance has been given that producers and pro-cessors
will gladly furnish the many items produced
in the state, or models of articles too large for inclu-sion
in a permanent exhibit, and Governor R. Gregg
Cherry has agreed that he will accept the collection
on behalf of the state, thus assuring the success of
the movement. The plan for this permanent exhibit
suggests that it will be a splendid method of showing
the people of North Carolina, now and in the future,
the extent of this state's participation in the war
effort from an industrial viewpoint.
W. Kerr Scott, State Commissioner of Agriculture,
under whose direction the already extensive State
Museum is maintained, has given assurance of his
interest in the proposal and assistance in handling
the exhibit. He suggests that such an exhibit would
be a valuable asset to the State Museum or the State
Fair, in connection with the extensive plans for the
future development of the State Fair grounds and
buildings on a permanent basis.
The plan has the further approval of the members
of two important war committees, members of which
exercise control over war production problems as
representative of federal procurement agencies, the
Production Urgency Committee and the Manpower
Priorities Committee—whose chairmen, Thomas J.
Love and Dr. Dorton, head the War Production Board
and the War Manpower Commission, respectively, in
North Carolina. The plan also carries the approval
of the State Management-Labor Committee of North
Carolina, representing employers and workers.
Naturally, it will be necessary for the producers
of war and war-supporting items in North Carolina
to make contributions of the items they produce,
carrying the names of the producers, method and
extent of items produced, their use and other infor-mation,
some of which must wait until the war with
Japan is over, in order that military information may
not be disclosed prematurely.
The cases in which the items produced or pro-cessed
are too large or heavy for inclusion in the
permanent exhibit, manufacturers or processors will
be asked to prepare miniature models containing the
essential features and materials of the items. Inplud-ed
in these would be the airplanes made in Burling-ton,
Liberty Ships and other types made at Wilming-ton,
New Bern, Manteo, Elizabeth City, Plymouth
and other places; steel oil barges in Raleigh; long
torn gun barrels, and other items in various parts
of the state.
A recent survey showed that 151 North Carolina
firms are engaged in producing war items or services
that were on the national and state "must" lists
—
highly urgent in war needs. Still others are making
numerous other war items that are more nearly on
schedule and therefore are not placed on the higher
priority lists. However, these are or have been just
as important to the prosecution of the war.
Naturally, cotton textiles, in which this state was
a leader already, include many of the "must" items.
Recently, cotton textiles have been placed in high
priority position, second only to vitally urgent secret
items. Cotton duck for tents, half shelter, stretch-ers,
ammunition belts and other purposes, is near
the top in urgency. Insulating yarns, parachute
yarns, tire cord and other items are also in great
demand.
The recent survey showed that 127 firms in the
"must" list are producing textile items and mate-rials.
Duck yarns are produced in 49 plants and in
47 plants insulating yarns are produced, while tent
twill is made in 16 plants. Seven firms are making
duck tenting, or cloth, one makes duck tents and an-other
shelter halves. Tire cord yarn is produced in
five plants, while in others products include high
tenacity rayon, nylon tent cloth, nylon duck, nylon
SPRING, 1945 THE U. C. C. QUARTERLY PAGE 55
ski-tent cloth, fragmentary bomb parachutes and
cable yarns.
Two or three plants each are engaged in producing
rockets, rocket bodies, barrels for guns, shells, gun
mounts and bomb parts, specific items including
bomb shell noses, bomb nose fuses, bomb caps, bomb
clusters, bomb fins and bomb fin assembly, and pig
lead, soft lead and antimonial lead.
One of the greatest items developed during this
war, radar, has an important place in North Carolina
production, seven plants are producing some parts
of this highly secret device. Included are one plant
listing just radar and others producing radar air-borne
parts, radar landborne gears, special radar
parts, and anti-radar alumnium foil.
Airplanes in the past have been produced in this
state, while a dozen plants are now engaged in some
form of aircraft production, modification, assembly
or processing. Six installations are engaged in air-plane
maintenance, three in airplane modification,
two in airplane assembly, two in producing parts and
components and one in producing propeller parts.
Ship and boat building has been and continues an
important industry along the Atlantic seaboard as
well as further inland. More than 100 Liberty ships
for cargo purposes and many of other types are built
at Wilmington, while a variety of other seacraft is
produced at other eastern ports and elsewhere in the
state. Other firms are engaged in making ship parts
and in outfitting ships.
Gathered together, all of these items and many
others about which little has been heard, will make
an exhibit that will be a revolution to every citizen
in North Carolina. In fact, most of the people of
the state will be astounded at the extent of war pro-duction
that has been going on around them.
This has been demonstrated on a smaller scale by
the displays of these items and materials in store
windows and theater lobbies in several communities
in North Carolina in recent months. Even workers
in the plants producing many of the items were sur-prised
at the extent of their own operations, to say
nothing of other people in the communities. Greens-boro,
Winston-Salem, Charlotte, Asheville, Hender-sonville,
Brevard, Lincolnton, and Raleigh are only
a few of the communities in which local products
have been displayed—to the utter amazement and
gratification of the local people.
Dr. J. S. Dorton, State Director for the War Man-power
Commission, outlined the plan for the perma-nent
exhibit, as follows
:
"The War Manpower Commission in North Caro-lina
is now collecting from all manufacturers and
processors specimens of war products being made
in the state. We feel that such a collection of war
materials will do much to stimulate morale of all
North Carolinians who have contributed so whole-heartedly
to the cause of freedom.
"While it is fairly well accepted that North Caro-lina
has done a good job in producing for the war
effort, few people realize the importance and magni-tude
of the job that has been done, and for this
reason we are attempting to collect material evidence
of the quantities produced.
"When finally collected and properly assembled
and displayed, such an exhibit will be of great value,
particularly as an historical reminder of North Caro-lina's
civilian contribution in man hours, materials
and products to this total war, and will, I feel sure,
be a revelation to the people of our state and a source
of great pride to our returning veterans and heroes,
and our younger and future generations.
"Since such a collection will have tremendous
value, the War Manpower Commission would like to
turn this exhibit over to the State of North Carolina,
after the cessation of hostilities, in order that it may
be preserved permanently and exhibited as a part
of the State Museum and /or the State Fair, since we
are contemplating a permanent State Exhibit of all
state products and resources in our new long-range
expansion plans for the State Fair.
"Your acceptance of such a collection on the part
of the state will do much to aid us in collecting these
valuable materials, since the donors would then be
assured of its permanent protection and preserva-tion."
Governor Cherry replied to this letter as follows:
"It has been brought to my attention that under
the supervision of your office, there is being collected
and properly assembled for display an exhibit show-ing
North Carolina's contribution in man hours, ma-terials
and products of the present World War. I
feel that this is a worthy undertaking that should
be preserved permanently.
"I will be glad to accept this exhibit on behalf of
the state and undertake to work with your office in
providing a suitable permanent place where the same
may be exhibited for the information of our citizen-ship."
N. C. BUSINESS INDEX
The North Carolina business index for April (lat-est
month for which figures are available) dropped
to 128.85, a decline of 4.26 percent from March. The
weighted index for April (considering the 1935-39
average as 100) stands at 165.78, or 65.78 percent
above the five-year base average.
The figures are compiled by S. F. Campbell, statis-tician
for the U. C. C. at Raleigh.
The April trend is attributed largely to decline in
cigarette production by 8.51 percent; a decline of
15.71 percent in furniture shipment, a 34.06 nose
dive in department store sales, a 9.98 percent decline
in cotton consumption in the textile industry.
On the other hand, there was a sharp upturn in
electrical energy production, a gain of 6.38 percent
in gasoline sales, and a gain of 2.36 percent in sales
of ordinary life insurance.
While employment and payroll data are not con-sidered
in computing the index, Campbell notes that
"payrolls have shown a decline in three of the last
four months, after a consistent upward trend since
1940. On the other hand, employment has been on
the decline since 1942, and is now 23.30 percent be-low
the 1932-39 trend, and 0.24 percent below the
1935-39 average." For the first time during the war,
both employment and the wages are below the level
of the previous year.
Publications of Unemployment Compensation Commission of North Carolina
Biennial Report, 1936-1938.
Biennial Report, 1938-1940.
Biennial Report, 1940-1942.
Biennial Report, 1942-1944.
Annual Report, 1937. (Mimeographed.) Out of
print.
Annual Report, 1938. (Mimeographed.) Out of
print.
Annual Report, 1939. (Mimeographed.)
Annual Report, 1940. (Mimeographed.)
Annual Report, 1941. (Mimeographed.) Out of
print.
Unemployment Compensation Law as amended
(1945.)
Employment Security News (mimeographed
—
weekly), started in 1936 by the North
Carolina Employment Service. Now issued
jointly by the Unemployment Compensation
Commission of North Carolina and United
States Employment Service. Suspended Dec.
1944 for duration.
North Carolina Employment Security Informa-tion,
Volume I, Numbers 1-12, 1941. (Dis-continued.)
U. C. C. Quarterly, Volume 1, Nos. 1-4 (1942-3)
Volume 2, Nos. 1-3 (1944)
Volume 3, No. 1 (1945)
Rules and Regulations.
Index and Digest of Commission Decisions 1-600.
CIRCULARS AND FOLDERS:
Benefit Payments for Partial Unemployment.
Employer Experience Rating in North Carolina.
Information for Workers about Unemployment
Compensation.
POSTERS:
Employer's Certificate of Coverage and Notice to
Workers.
Notice to Workers—Partial Benefits.
Are You Protected?
STATISTICAL REPORTS:
(Current series, mimeographed.)
Business Activity in North Carolina as Reflected
by Movements in Selected Indicators
—
Current Trends (monthly).
Unemployment Compensation Trends (monthly).
This report began with June 1943, and
succeeds three of the former monthly series
reports
:
(1) Summary of Claims Activity
(2) Summary of Local Office Operations
(3) Number and Amount of Benefit Pay-ments,
by Office (monthly).
Weekly Summary of Initial and Continued Claims
Taken and Benefit Checks Distributed by
Area and Office.
(Special Studies, 1944-1945)
Analysis of Benefit Formulas—1936-1939-1940—
Alternates
Analysis of Claims with Benefit Years Ending in
1944.
Covered Employment and Wages 1943, by County
and Industry (Confidential)
Effect of Demobilization on N. C. Employment and
Unemployment Compensation
Experience Rating in N. C, 1945
Geographic Distribution of the N. C. Labor Force
Industrial Distribution of the N. C. Labor Force
Industrial Trends in N. C, 1940-1942
Post-War Unemployment.
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